Macquarie Invests $5 Billion in Applied Digital's HPC Centers
Deal News | Jan 14, 2025 | Simpson Thacher & Bartlett
Macquarie Asset Management (MAM) has committed to investing up to $5 billion in Applied Digital Corporation's high performance computing (HPC) data center business. The investment is intended to support the development of Applied's HPC data center pipeline, with an initial $900 million targeted at the company's Ellendale HPC data center campus. This initial investment will be in the form of a perpetual preferred equity and a 15% common equity stake in Applied's HPC business segment. MAM will have the option to invest an additional $4.1 billion over the next 30 months. Simpson Thacher & Bartlett is advising MAM on this transaction. MAM, part of Macquarie Group, manages approximately $633.7 billion in assets and offers diversified investment solutions. The transaction underscores MAM's long-term commitment to expanding its presence in digital infrastructure sectors.
Sectors
- Digital Infrastructure
- Asset Management
Geography
- United States – Applied Digital Corporation is based in the United States and the investment pertains to its data center operations there.
- Australia – Macquarie Group, the parent of Macquarie Asset Management, is headquartered in Australia.
Industry
- Digital Infrastructure – The investment focuses on enhancing the high performance computing data centers of Applied Digital, a key component of digital infrastructure.
- Asset Management – Macquarie Asset Management, a major player in the asset management industry, is orchestrating this investment, showcasing its commitment to diversifying its portfolio.
Financials
- Up to $5 billion – Total potential investment by Macquarie Asset Management in Applied Digital's HPC data center business.
- $900 million – Initial investment amount in Applied's Ellendale HPC data center campus.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Macquarie Asset Management | Investor | Company | A global asset manager overseeing approximately $633.7 billion in assets. |
| Applied Digital Corporation | Target Company | Company | A company specializing in designing, building, and operating next-generation digital infrastructure. |
| Simpson Thacher & Bartlett | Legal Advisor | Company | A prominent law firm advising Macquarie Asset Management on the investment deal. |
| Macquarie Group | Parent Company | Company | A diversified financial group providing asset management, finance and advisory services. |