Applied Digital Names New SVP of Operations Amid Growth Reports

Chris D. Jackson, who previously served as SVP of Operations at Stream Data Centers, joins Applied Digital as the new SVP of Operations. His appointment comes as the company reports significant financial gains and strategic initiatives, including a $125 million share sale agreement and a $200 million private debt facility to accelerate its HPC Data Center Project in Ellendale, North Dakota.

Chris D. Jackson

Applied Digital Corporation (Nasdaq: APLD), a Dallas-based designer, builder, and operator of next-generation digital infrastructure for high-performance computing (HPC) applications, has appointed Chris D. Jackson as its new senior vice president of operations, the company announced this week.

Jackson brings over two decades of experience in managing critical project operations and a “robust record of success and uptime availability” to Applied Digital. In addition to his appointment, the company has recently reported significant financial gains and strategic initiatives, signaling a period of growth and expansion.

According to the announcement, he will be responsible for overseeing development and operational activities, including security, safety, reliability, engineering, customer experience, and compliance.

Prior to joining Applied Digital, Jackson served as senior vice president of operations at Stream Data Centers, an affiliate of Dallas-based Stream Realty Partners focusing on data center services, since June 2022. In that role, he was responsible for the group’s operations, mirroring his new responsibilities at Applied Digital.

It’s worth noting that Jackson’s appointment could cause some name confusion related to Stream. Chris D. Jackson was part of Stream Realty Partners’ data center operations subsidiary in his previous role, while Chris Jackson (without the middle initial) is the president and CEO of Stream Realty Partners‘ main real estate company.

Before his stint at Stream, Jackson was VP of operations at Vantage Data Centers, where Applied Digital said he assisted in cost reductions and was responsible for improving operational productivity as the lead of the Americas. During his time there, he oversaw expansion from a “three-market entity to a leading global provider of hyperscale data centers.”

Perhaps most notably, Jackson managed what was publicly reported as “the world’s largest availability zone for Amazon Web Services (AWS), overseeing 1200MW of IT resources across 140 data centers and maintaining 99.999% availability,” according to the announcement.

Wes Cummins, CEO of Applied Digital, said the company sees the value of Jackson’s skill set and experience in optimizing its “operational infrastructure and boosting efficiency and scalability” across its data centers.

Applied Digital positions itself as a provider of cutting-edge solutions in data centers and Cloud as a Service. The company designs “purpose-built” data centers to maximize efficiency for HPC needs, while its Applied Digital Cloud aims for cost-effective GPU computer solutions tailored for AI, ML, rendering, and other HPC workloads.

In an era of “exponential technological advancement,” the company said its state-of-the-art infrastructure offers high performance at a low cost.

Jackson, a United States Navy veteran, said he looks forward to helping Applied Digital meet the industry’s growing demands. “The company’s innovative approach and strong commitment to excellence make it an ideal place to contribute my skills.” he said in a statement.

Recent financial performance and strategic initiatives

According to a July 9, 2024, announcement, Applied Digital reported preliminary revenue for the fiscal fourth quarter that ended May 31, 2024 to be between $41.7 million and $43.7 million, surpassing the consensus estimate of $29.32 million, as reported by StreetInsider. The company also projected its adjusted EBITDA to range from $2.8 million to $4.8 million.

Also on July 9, Applied Digital entered into a $125 million share sale agreement with B. Riley Securities Inc., BTIG, and other financial institutions, according to the publication. Seeking Alpha noted that the company’s stock has experienced some volatility following the announcement.

In other recent moves, Applied Digital executed a letter of intent in April 2024 with a U.S.-based hyperscaler for a 400 MW capacity lease at its Ellendale, North Dakota, campus, which included the current 100 MW facility and two forthcoming buildings. The company issued a $42,131,579 unsecured convertible debenture in May 2024 to advance its HPC Data Center Project in Ellendale, which had experienced challenges after power outages in early 2024. Following this, in June 2024, Applied Digital secured a private debt facility of up to $200 million to further accelerate the same project, according to another company announcement.

Investing.com reported on July 10, 2024, that the company’s Ellendale data center is now fully operational after completing upgrades. The “faster-than-anticipated re-energization” of this North Dakota facility contributed to the positive Q4 results, with the upgrades and rapid scaling of GPU operations driving revenue and EBITDA outperformance, per the publication.

The publication also noted that the company has caught the attention of analysts, particularly for its infrastructure initiatives in the AI and HPC sectors.

Other leadership and board changes

Beyond the addition of Jackson as SVP of operations, Applied Digital has made other recent leadership changes. The company recently appointed Todd Gale as the new chief development officer and added Ella Benson as an independent director to the company’s board of directors.