Shares of Applied Digital Corporation (APLD) surged over 5% in pre-market trading on Wednesday, following the company's announcement of closing a $375 million financing deal with Sumitomo Mitsui Banking Corporation (SMBC) to support its Ellendale High Performance Computing (HPC) campus project.

Applied Digital, a designer and operator of next-generation digital infrastructure for HPC applications, said the financing from SMBC will enable the company to advance the development of its Ellendale HPC Campus. The company plans to use a portion of the proceeds to repay existing debt obligations, while the remaining funds will go towards the construction of the first two data center buildings at the site.

The Ellendale HPC Campus is a key growth initiative for Applied Digital, aimed at providing secure, scalable, and sustainable digital hosting solutions for AI, machine learning, blockchain, and other high-performance computing workloads. The partnership with SMBC, one of the world's leading data center financing platforms, further validates the strategic importance of this project.