Jan 14 (Reuters) - Data center operator Applied Digital ( APLD )

on Tuesday posted a smaller-than-expected loss for the

second quarter, helped by increased demand for high-performance

data center infrastructure and cloud services business.

The company's stock closed nearly 10% higher on Tuesday

after Australia's Macquarie announced it would invest

up to $5 billion in Applied Digital's ( APLD ) AI data centers and take a

15% stake in the company's high-performance computing business.

The funding deal with Macquarie will help Applied Digital ( APLD )

repay debt incurred to build its data centers in North Dakota

and further allow the company to recover over $300 million of

its equity investment in the facilities.

Applied Digital ( APLD ) posted an adjusted net loss of 6 cents per

share for the quarter ended Nov. 30, compared with a loss of 15

cents per share expected by analysts, according to data compiled

by LSEG.

Applied Digital's ( APLD ) shares have more than tripled in the past

two years as investors bet on strong growth at AI firms and data

center providers thanks to the booming AI landscape.

Dallas, Texas-based Applied Digital ( APLD ) posted second-quarter

revenue of $63.9 million, up 51% from last year and largely in

line with analysts' estimates.

Applied Digital ( APLD ), which operates data centers catering to

high-performance computing required for technologies including

crypto mining and AI, has also seen a significant contribution

from its cloud services business, while being dominated by data

center hosting segment.

Constructing and maintaining data center facilities to

swiftly meet demand is a lengthy and capital-intensive process,

meaning companies like Applied Digital ( APLD ) require substantial

investments over time.