The financing expands Applied Digital's AI infrastructure push while highlighting risks tied to heavy borrowing, tenant concentration and shifts in demand for data center capacity.
Applied Digital has tapped the junk-bond market for $2.35 billion to build an AI data center for CoreWeave, marking a larger financing than previously reported. The deal underscores continued investor support for AI infrastructure buildouts, but it also points to risks associated with higher leverage, reliance on a major tenant and potential market shifts that could affect demand for capacity.