North Dakota Lawmakers Reviewing Data Center Regulations Amid Calls for Moratorium
An opinion piece argues that North Dakota already possesses strong laws governing data centers, particularly concerning electricity costs, despite calls for new regulations and a moratorium. It highlights the state's "cost causation" principle, which requires large power consumers like Applied Digital to cover their utility infrastructure costs. Meanwhile, a federal bill mirroring these protections is advancing in Congress, and a state interim legislative committee is reviewing and updating North Dakota's existing laws.
An opinion column by Rob Port in The Dickinson Press asserts that North Dakota's existing laws adequately govern data centers, pushing back against what he describes as "hysteria" from activists and political candidates demanding new regulations and a moratorium. Port argues that concerns such as noise, traffic, lighting, and power/water consumption are common to any large industrial project, and that North Dakota's policies, particularly the "cost causation" principle, already address major issues like electricity use.
The article cites U.S. Rep. Julie Fedorchak, R-N.D., who champions the federal Ratepayer Protection Act, which passed the Energy and Commerce Committee unanimously and now advances to the full House. This bill mandates data centers pay their full cost of service and provide upfront financial assurances, echoing North Dakota's current state laws. Gov. Kelly Armstrong has also pledged to support similar ratepayer protection laws. As an example of current laws in action, Port points to Applied Digital's facilities in Ellendale and Harwood, noting that the company paid over $24.8 million in "transmission riders" between 2023 and 2025, with an additional $7 million for 2026, directly covering infrastructure costs.
Despite these existing protections, Democratic-NPL candidate for agriculture commissioner, Vern Thompson, has called for a temporary one-year moratorium on data center construction, arguing that development is happening too rapidly. However, State Rep. Jonathan Warrey, R-Casselton, who chairs a recently formed interim legislative committee, expressed reservations about moratoriums, stating that the committee is focused on reviewing and updating the existing legal and environmental framework for data center development ahead of next year's legislative session. The article concludes that while work remains, much of it involves informing North Dakotans about the efficacy of current laws.