AI Data Centers Get a Boost: Macquarie Invests Up to $5 Billion
The artificial intelligence revolution is driving companies to invest heavily in technology capable of processing massive amounts of data. In a significant move, investment bank Macquarie is injecting up to $5 billion into Applied Digital’s AI data centers, acquiring a 15% stake in the company.
A Strategic Partnership
Macquarie’s asset management arm has agreed to invest up to $900 million in a data center campus being developed by Applied Digital in North Dakota. Additionally, Macquarie has secured the right of first refusal to invest an additional $4.1 billion in future company data centers over the next 30 months.
Funding for Growth
The new funding will be used to repay debt incurred by Applied Digital to build the facilities in North Dakota, allowing the company to recover over $300 million of its equity investment. This investment is a testament to the growing demand for AI data centers, which are expected to drive strong levels of growth in the industry.
Industry Trends
Microsoft recently announced plans to invest around $80 billion in AI data centers in fiscal 2025 to meet growing computational needs. Applied Digital’s shares have more than tripled in the past two years, reflecting investor confidence in AI firms and data center providers.
What’s Next?
Applied Digital is set to report its second-quarter results on Tuesday after the markets close. The company’s future prospects look bright, with this significant investment poised to drive growth and expansion in the AI data center space.
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