An ongoing power outage at an Applied Digital data center will hit the company’s revenue for the upcoming period, it said on Friday.
Applied Digital, formerly known as Applied Blockchain, is suffering problems with its data center at Ellendale, in the US state of North Dakota. The company provides crypto and high performance computing infrastructure.
According to a filing placed with US financial regulator the Securities and Exchange Commission (SEC), the outage began on January 18, and the facility was completely down by the following day.
This “complete power outage” is “currently ongoing as our electricity provider is performing upgrades to ensure stability of our electrical supply,” the company said.
While the financial impact of the issue was initially unclear, the SEC filing says that, as of February 6, the company’s management team has “determined that revenues from this facility will be materially impacted by this outage for the quarter-ending February 29.”
It added: “Management cannot be certain of the exact amount of that impact at this time. Management expects this facility to be online again during February 2024.”
Ellendale is a 180MW data center which opened last year and was initially designed for cryptomining. However, it is now being developed into an HPC facility as Applied Digital pivots to offer more AI-related services.
The company runs several data centers across the US, including a 5MW “specialized processing facility” designed to host GPUs in Jamestown, North Dakota.
Earlier this month, it secured $20m in loan financing to help fund its expansion into HPC, which involves acquiring GPUs and improving cooling at its facilities.
“This capital will allow us to continue building our new Ellendale HPC facility and meet our schedule while we finalize our larger project-level financing," Applied Digital CFO David Rench said at the time.
The company is also expecting to secure $16m in site-level financing to help build out its Jamestown HPC offering.