North Dakotans look for answers as questions on data centers mount
North Dakota is struggling to establish regulations for a rapid influx of data center development, prompting several counties to enact temporary moratoriums and debate local ordinances. Statewide legislative efforts to implement systematic rules and a proposed moratorium were rejected, leaving communities to address concerns about water, electricity, noise, and economic impact independently. Applied Digital's projects in Ellendale are highlighted as an example of both benefits and local challenges.
North Dakota faces significant challenges in regulating the rapid expansion of hyperscale data centers, driven by artificial intelligence. While the U.S. Data Center Map indicates 12 operational facilities, six under construction, and 15 planned or proposed in the state, state and local governments are struggling to develop policies and gather public input quickly enough.
Several North Dakota counties have implemented temporary moratoriums or are debating new ordinances to address concerns. Minot, for instance, recently established a data center ordinance following public input. However, public forums across the state reveal growing negative sentiment and numerous unanswered questions regarding water and electricity consumption, tax revenue, the impact of non-disclosure agreements, job creation, and decommissioning plans.
Despite some local successes, such as Ellendale Mayor Don Flaherty highlighting economic benefits and job creation from Applied Digital's projects in his town, efforts at the state level to implement systematic rules and a statewide moratorium failed in the recent legislative session. Bills aimed at prohibiting NDAs and studying data centers also did not advance. State Sen. Mark Enget, who organized a town hall in Tioga, emphasized that the debate will continue into the next legislative session, with a focus on creating appropriate bills that balance industry encouragement with community values. The article concludes by noting the difficulty for politicians nationwide to reconcile public backlash, exemplified by a Marquette University poll showing 71% of Americans believe data center costs outweigh benefits.