Applied Digital Corporation (NASDAQ: APLD) is back in the spotlight on 20 November 2025, with its stock jumping again as traders digest a wave of news around the company’s ambitious AI data‑center “Factory” strategy, massive new debt financing, and a long‑term power partnership with Babcock & Wilcox (B&W).
As of early afternoon trading on Thursday, APLD shares are around $25–26, up roughly 10% on the day versus Wednesday’s close near $23.09, according to real‑time quote data. [1] The move extends a volatile week in which the AI data‑center specialist has whipsawed on financing headlines but still remains up well over 200% year‑to‑date, powered by surging demand for high‑performance computing (HPC) capacity. [2]
What’s new today: key Applied Digital headlines on 20 Nov 2025
Several fresh pieces of coverage are driving attention to APLD this morning:
- AI Factory power deal spotlighted – Insider Monkey highlights Applied Digital’s agreement with Babcock & Wilcox to deliver power for an AI “Factory” project valued at more than $1.5 billion, including a planned 300‑megawatt natural‑gas power plant slated to support a site expected to come online in 2028. [3]
- Leading tech pre‑market gainers – Benzinga’s pre‑market movers report lists Applied Digital up about 11% to around $25.6 in early trading, placing it among the strongest gainers in the information technology group. [4]
- Index futures coverage – A Barron’s automation write‑up on U.S. stock index futures notes Applied Digital as one of the leading individual names in pre‑market trading, alongside Exact Sciences. [5]
Beyond those real‑time headlines, investors are still processing a flurry of capital‑raising and infrastructure announcements over the past two weeks that explain why APLD is suddenly on so many trading screens.
The Babcock & Wilcox power deal: securing 1 GW for AI Factories
The most eye‑catching piece of the story is Applied Digital’s power strategy.
On 4 November, Babcock & Wilcox announced it had signed a limited notice to proceed (LNTP) with Applied Digital on a project valued at more than $1.5 billion to provide one gigawatt of electric power for an Applied Digital AI Factory. [6]
Key details from B&W and subsequent industry coverage:
- The plan calls for four 300‑MW natural‑gas boiler and steam‑turbine plants, using “off‑the‑shelf” designs that B&W says can be deployed more quickly than many simple‑cycle gas turbine solutions aimed at data centers. [7]
- The project is explicitly positioned as an AI data center power platform, designed to address the massive energy needs of AI factories and high‑density GPU clusters.
- B&W expects a full notice to proceed in early 2026, with the Applied Digital AI Factory site currently targeted to start operations in 2028. [8]
Insider Monkey’s piece on 20 November frames the partnership as reinforcing Applied Digital’s upside in the AI data‑center and GPU cloud space and notes that Northland Securities recently reaffirmed a Buy rating on APLD with a $40 price target on 13 November. [9]
In the same coverage, CEO Wes Cummins calls B&W “a company with nearly 160 years of leadership in power generation” and stresses that their boiler‑and‑turbine setup offers efficiency comparable to the gas‑turbine options Applied evaluated while enabling faster deployment—a point that matters as hyperscalers race for scarce megawatts. [10]
Taken together, the B&W deal underscores a critical reality: Applied Digital is no longer just a data‑center landlord. It is working to lock in long‑duration, dedicated power infrastructure—arguably the scarcest input to the AI boom.
$2.35 billion of 9.25% notes: big debt for big North Dakota buildouts
Today’s rally also comes as Wall Street digests Applied Digital’s most recent financing move: a $2.35 billion senior secured notes offering scheduled to close around 20 November 2025, subject to market conditions. [11]
From the company’s 13 November press release:
- Subsidiary APLD ComputeCo LLC has priced $2.35 billion of 9.25% senior secured notes due 2030 at 97% of face value, implying a yield above the coupon. [12]
- Net proceeds will be used to:
- Fund construction and related costs for two new North Dakota facilities, ELN‑02 (100 MW) and ELN‑03 (150 MW), at the 400‑MW Ellendale “Polaris Forge 1” campus
- Repay an existing credit facility with Sumitomo Mitsui Banking Corporation
- Establish debt‑service reserves and cover transaction expenses [13]
- The notes are secured by first‑priority liens on substantially all assets tied to the Ellendale project and fully guaranteed by a stack of project entities. [14]
Law firm Latham & Watkins confirmed on 18 November that it is advising the initial purchasers on the deal and reiterated that closing is expected on or around 20 November. [15]
This is not the only capital coming in:
- On 12 November, Applied Digital announced it expects a second $787.5 million equity draw from Macquarie Asset Management under a long‑term preferred equity facility of up to $5.0 billion. [16]
- Of that, $450 million is earmarked for Polaris Forge 2 near Harwood, North Dakota, with $337.5 million going to Polaris Forge 1 in Ellendale—subject to the note offering closing. [17]
Macquarie’s statement in the release characterizes Applied Digital as a “trusted partner to hyperscale customers” with a differentiated pipeline of near‑term power and data‑center opportunities. [18]
In other words, APLD is stacking a lot of leverage on top of long‑dated hyperscale contracts, betting that AI demand will remain strong enough to make the economics work.
Inside the Polaris Forge AI Factory campuses
All of this financing and power infrastructure feeds into the company’s flagship “AI Factory” footprint in North Dakota:
- Polaris Forge 1 (Ellendale, ND)
- Planned 400 MW of critical IT capacity with expansion potential above 1 GW. [19]
- Uses a closed‑loop, waterless, direct‑to‑chip cooling system designed for ultra‑high power density GPUs and HPC workloads. [20]
- Hosts a long‑term AI infrastructure relationship with CoreWeave, including roughly 250 MW of 15‑year lease commitments announced in June. [21]
- First 50 MW of the initial 100‑MW building were recently declared “ready for service” for CoreWeave, marking a major ramp milestone. [22]
- Polaris Forge 2 (Harwood, ND)
- Planned US$3 billion, 280‑MW AI‑ready campus on about 900 acres, leveraging Applied’s liquid‑cooled design. [23]
- Backed by a US$5 billion AI Factory lease with a U.S. investment‑grade hyperscaler, covering 200 MW of capacity under long‑term agreements and giving the customer first rights on an additional ~800 MW, effectively the full 1‑GW expansion potential at the site. [24]
- Local utility Cass County Electric Cooperative is lined up as the power partner for Polaris Forge 2. [25]
The company’s positioning is clear: it wants to be the go‑to builder and operator of AI‑optimized, power‑dense data centers in secondary U.S. markets where land, power, and regulatory support are more favorable than in traditional Silicon Valley‑style hubs. [26]
Why the stock has been so volatile
If today feels like a relief rally, that’s because APLD has been on a roller coaster this month.
- Year‑to‑date, Applied Digital’s share price has rocketed more than 200%, as investors rewarded its rapid pivot from crypto‑mining colocation toward AI‑focused data‑center infrastructure and GPU cloud services. [27]
- However, shares fell around 20–25% intraday last week after the company unveiled what some outlets framed as roughly $3.1 billion in combined debt and equity financing tied to the Macquarie facility and the new note deal. [28]
- Over the last seven trading days through 19 November, APLD’s daily moves have repeatedly exceeded 7–12% in either direction, with extremely heavy volumes well into the tens of millions of shares. [29]
Options traders have taken notice, too. Recent coverage flagged unusually large call‑option activity in APLD, indicating that speculative interest in upside moves remains high even amid the financing‑driven sell‑off. [30]
Today’s bounce appears to reflect a second look by traders:
- The power partnership with B&W helps reassure the market that APLD can access the dedicated energy infrastructure these AI factories will require.
- The Macquarie equity facility, while dilutive at the project level, provides long‑term capital from a major global infrastructure investor.
- The 9.25% senior notes are expensive, but they lock in multi‑year funding tied directly to long‑term leases at Ellendale.
Put simply, investors are deciding whether this capital stack represents smart, asset‑backed growth financing—or an aggressive bet that could backfire if AI demand or financing conditions change.
Credit rating, leverage and risk
Credit analysts are watching the same issues. Earlier this month, S&P Global Ratings assigned Applied Digital a ‘B+’ rating with a positive outlook, highlighting both:
- The concentration of projected earnings in data centers that are still under construction, and
- The potential for meaningful cash flow growth if the company executes on Polaris Forge 1 and 2 as planned. [31]
The 9.25% coupon and 97‑cent issue price on the notes confirm that lenders are demanding a sizable risk premium to finance these projects. [32]
Key risks investors and lenders will be weighing:
- Execution risk – Can Applied Digital complete these massive campuses on time and on budget, while bringing hyper‑scale tenants live without major delays?
- Customer concentration – CoreWeave and at least one unnamed U.S. investment‑grade hyperscaler represent large, multi‑billion‑dollar lease commitments. A problem with any one counterparty could significantly impact cash flows. [33]
- Power and regulatory risk – The reliance on natural‑gas‑fired plants to power AI data centers may draw environmental scrutiny or policy changes over time, even as Applied also emphasizes efficiency and zero‑water cooling solutions. [34]
- Interest‑rate and refinancing risk – High‑coupon notes and preferred equity obligations will need to be serviced for years. If AI demand or pricing falls short, leverage could squeeze equity returns.
For now, though, markets appear willing to give APLD the benefit of the doubt—at least today.
What to watch next for APLD
For traders and longer‑term investors tracking Applied Digital, a few near‑term milestones stand out:
- Final closing of the $2.35B notes
Confirmation that the offering has successfully closed, and any early indications on investor appetite or secondary market trading. - Progress on Macquarie’s $787.5M draw
Any updated timing or conditions, and whether additional tranches under the $5B facility are contemplated in 2026. [35] - Updates on Polaris Forge 1 & 2 buildout
Additional “ready for service” milestones in Ellendale and construction updates in Harwood, particularly as more of the 400‑MW + 280‑MW capacity comes online. [36] - Regulatory and community developments in North Dakota
State and local reactions to the rapid expansion of power‑hungry AI factories, and how Applied Digital navigates land, power and environmental concerns. [37] - Further power‑infrastructure partnerships
ABB recently expanded a power‑technology relationship with Applied Digital for AI‑ready data centers, suggesting the company may continue to line up multiple vendors beyond B&W. [38]
Bottom line
On 20 November 2025, Applied Digital (APLD) sits at the intersection of three massive themes:
- The exploding demand for AI and HPC data centers
- The race to secure dependable, scalable power for those facilities
- And the willingness of capital markets to fund multi‑billion‑dollar buildouts in less traditional tech geographies like rural North Dakota
Today’s move higher reflects growing market recognition of that story—alongside a sober understanding that APLD is making a big, leveraged bet on the future of AI infrastructure.
As always, this overview is for information purposes only and is not investment advice. Anyone considering APLD or similar names should carefully review the company’s SEC filings, risk disclosures, and their own risk tolerance before making decisions.
References
1. stockanalysis.com, 2. www.nasdaq.com, 3. www.insidermonkey.com, 4. www.benzinga.com, 5. www.barrons.com, 6. www.babcock.com, 7. www.babcock.com, 8. investors.babcock.com, 9. www.insidermonkey.com, 10. www.insidermonkey.com, 11. www.globenewswire.com, 12. www.globenewswire.com, 13. www.globenewswire.com, 14. www.globenewswire.com, 15. www.lw.com, 16. ir.applieddigital.com, 17. ir.applieddigital.com, 18. ir.applieddigital.com, 19. datacentremagazine.com, 20. datacentremagazine.com, 21. www.jamestownsun.com, 22. www.datacenterdynamics.com, 23. datacentremagazine.com, 24. ir.applieddigital.com, 25. datacentremagazine.com, 26. datacentremagazine.com, 27. www.nasdaq.com, 28. finance.yahoo.com, 29. stockanalysis.com, 30. finance.yahoo.com, 31. www.spglobal.com, 32. www.globenewswire.com, 33. ir.applieddigital.com, 34. www.babcock.com, 35. ir.applieddigital.com, 36. www.datacenterdynamics.com, 37. datacentremagazine.com, 38. new.abb.com
