BASX Powers Advanced Cooling Innovation for Applied Digital's Purpose-Built AI Data Center Campus

Rhea-AI Summary

BASX, a subsidiary of AAON (NASDAQ: AAON), has announced a partnership with Applied Digital (NASDAQ: APLD) to provide custom cooling solutions for Applied Digital's AI data center campus in Ellendale, North Dakota. The collaboration centers on a specialized free cooling chiller system designed for the Polaris Forge 1 facility.

The innovative cooling system operates in three modes with zero water consumption: full free cooling, partial free cooling, and full mechanical cooling. This system is specifically engineered to handle the high power density requirements of AI infrastructure, which demands 15 to 30 times more power density than traditional data centers.

The solution leverages North Dakota's cold climate conditions and is optimized for liquid-cooled NVIDIA GPUs, demonstrating a scalable approach to thermal management that prioritizes efficiency and sustainability.

Positive

• Custom cooling system operates with zero water consumption
• System designed to handle 15-30x higher power density than traditional data centers
• Flexible three-mode operation maximizes energy efficiency
• Solution specifically optimized for liquid-cooled NVIDIA GPUs

Negative

• None.

Insights

Energy Infrastructure Analyst

AAON's BASX subsidiary delivers zero-water cooling technology for AI data centers, positioning it strategically in the high-growth AI infrastructure market.

BASX, AAON's wholly owned subsidiary, has engineered a significant technological advancement in data center cooling with their partnership with Applied Digital. The custom free cooling chiller system deployed at Applied Digital's North Dakota AI facility addresses the extreme cooling demands of AI infrastructure while achieving two critical efficiency metrics: zero water consumption and optimized energy usage through multiple operating modes.

What makes this development particularly notable is how it positions AAON at the intersection of two crucial market trends. First, AI data centers require 15-30 times the power density of traditional facilities, creating massive thermal management challenges that conventional solutions can't efficiently address. Second, data center sustainability – particularly water usage – has become a critical industry constraint.

The system's three-mode operation (full free cooling, partial free cooling, and full mechanical cooling) represents a sophisticated approach to resource optimization. In cold climates like North Dakota, the system can reject 100% of IT heat load using only pumps and fans during much of the year, dramatically reducing energy consumption compared to traditional cooling methods.

This partnership demonstrates AAON's strategic advancement in the rapidly expanding AI infrastructure market. As compute-intensive workloads continue growing exponentially, AAON is establishing itself as a specialized provider addressing the unique cooling requirements of next-generation data centers. The ability to deliver customized solutions for the most demanding AI deployments significantly expands AAON's addressable market beyond traditional HVAC applications into high-value, high-growth infrastructure supporting the AI revolution.

At Applied Digital's Ellendale, North Dakota campus, BASX is deploying bespoke free cooling chillers — optimized for cold-climate operation, reducing power demand, and requiring zero water consumption

REDMOND, Ore., June 30, 2025 /PRNewswire/ -- BASX, a leader in advanced cooling and custom solutions for data centers and mission-critical environments, and a wholly owned subsidiary of AAON, Inc. (Nasdaq: AAON), a leading provider of high-performance, energy-efficient HVAC solutions, today announced a partnership with Applied Digital Corporation (Nasdaq: APLD) ("Applied Digital"). Applied Digital, a designer, builder, and operator of next-generation digital infrastructure designed for High-Performance Computing (HPC) applications.

As part of the collaboration, BASX designed and manufactured a customized free cooling chiller system for Applied Digital's AI factory in Ellendale, North Dakota, known as Polaris Forge 1. The system is purpose-built to meet the performance demands of AI infrastructure in a cold climate, while maximizing energy efficiency and sustainability.

Built to endure the harshest climates, the free cooling chiller system performs in three optimized modes –– all with zero water use.

• Full Free Cooling: Rejects 100% of the IT load using only pumps and fans.
• Partial Free Cooling: Leverages ambient air to handle as much of the load as possible, supplementing with direct expansion (DX) cooling as needed.
• Full Mechanical Cooling: Engages compressors and coils to provide full DX capacity during peak ambient conditions.

"As a leading provider of AI factories, designed and built specifically to support NVIDIA liquid-cooled GPUs, innovation is a core component of our business. We presented a challenge to BASX to develop a highly efficient chiller to leverage North Dakota's climate conditions and the demands presented by liquid-cooled servers and, as they are known to do, BASX engineered, designed, and built a world-class system that we are deploying at our Polaris Forge 1 site." said Todd Gale, Chief Development Officer at Applied Digital.

"From the onset, this was about more than delivering standard HVAC — it was a collaboration between two teams determined to break away from cookie-cutter solutions," said Matt Tobolski, PhD – AAON CEO & BASX Co-Founder. "Applied Digital brought us a clear challenge, and we responded with a system engineered from the ground up to meet it. We solve problems at the root and build for what's next, not just what's easy."

AI factories like Polaris Forge 1 require 15 to 30 times the power density of traditional data centers, making conventional power and cooling strategies insufficient, according to a May 28, 2024, press release from Applied Digital. Meeting these demands requires infrastructure engineered from the ground up to support high-density, compute-intensive workloads.

As AI adoption accelerates, demand for high-efficiency cooling solutions continues to grow. Higher return fluid temperatures enabled by direct-to-chip cooling allow more heat to be rejected directly to ambient air, even in warmer conditions. This system demonstrates a scalable approach to thermal management — designed for operators who prioritize innovation, efficiency, and long-term sustainability.

ABOUT BASX
BASX, a wholly owned subsidiary of AAON, is a leader in manufacturing high-efficiency data center cooling, cleanroom systems, custom HVAC, and modular solutions. For the past 40 years, the BASX team has been recognized as leaders in the development of industry-changing innovations such as changes in the way fans are applied in modern air handling systems. With in-house manufacturing and a dedicated engineering team providing end-to-end support, BASX delivers fully custom solutions tailored to each client's unique needs. Headquartered in Redmond, Oregon, with additional facilities in Tulsa, Longview, and Memphis, BASX remains committed to quality, reliability, and exceptional customer service worldwide.

ABOUT AAON
Founded in 1988, AAON is a world leader in HVAC solutions for commercial and industrial indoor environments. The Company's industry-leading approach to designing and manufacturing highly configurable equipment to meet exact needs creates a premier ownership experience with greater efficiency, performance and long-term value. AAON is headquartered in Tulsa, Oklahoma, where its world-class innovation center and testing lab allows AAON engineers to continuously push boundaries and advance the industry. For more information, please visit www.aaon.com.

ABOUT APPLIED DIGITAL
Applied Digital (Nasdaq: APLD) develops, builds and operates next-generation data centers and cloud infrastructure. Different by design, the company's purpose-built facilities are engineered to unleash the power of accelerated compute and deliver secure, scalable and sustainable digital hosting, along with turnkey CSaaS and GPU-as-a-Service solutions. Backed by deep hyperscale expertise and a robust pipeline of available power, Applied Digital accommodates AI Factories and beyond to support the world's most exacting AI/ML, blockchain and high-performance computing (HPC) workloads.

Applied Digital Contact Information:
JSA
jsa_applied@jsa.net

BASX Contact Information:
Christina Lattanzio
Christina.lattanzio@aaon.com
(918) 382 - 6597 

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SOURCE AAON

FAQ

What cooling solution has AAON developed for Applied Digital's AI data center?

BASX, AAON's subsidiary, developed a custom free cooling chiller system with three operating modes that requires zero water consumption, specifically designed for Applied Digital's Polaris Forge 1 facility in North Dakota.

How does AAON's cooling system handle AI infrastructure power demands?

The system is engineered to manage 15-30 times higher power density than traditional data centers, using three modes: full free cooling, partial free cooling, and full mechanical cooling.

What are the key features of BASX's cooling system for Applied Digital?

The system features zero water consumption, three optimized cooling modes, compatibility with liquid-cooled NVIDIA GPUs, and is specifically designed for cold climate operation in North Dakota.

How does AAON's cooling solution contribute to sustainability?

The system operates with zero water consumption and maximizes energy efficiency through free cooling capabilities that leverage ambient air conditions, supporting long-term sustainability goals.