North Dakota Officials Tout Data Center Benefits for Tax Base, Population Growth
Officials from North Dakota and data center companies highlighted the economic benefits of data centers, such as increased tax bases and population growth, during a panel discussion. They also addressed public concerns regarding the size, noise, and water usage of these facilities. The city of Ellendale's experience with Applied Digital was presented as a positive example of community partnership and economic development.
At the Lignite Energy Council's annual conference in Bismarck, North Dakota, a panel of officials and industry representatives discussed the benefits and challenges associated with data center development in the state. Stacy Tschider, CEO of Rainbow Energy Center, Dave Nehring, Director of Local & Regional Affairs for Applied Digital, and Ellendale Mayor Don Flaherty emphasized how data centers contribute to increased property tax bases and local population growth, while also providing opportunities for North Dakota's energy resources.
The panelists acknowledged intense public scrutiny and growing pushback against data centers, often related to their size, noise, proximity to homes, and water usage. Mayor Flaherty highlighted Ellendale's experience with an Applied Digital data center campus, projecting a population increase of 400-600 people and a more than tenfold growth in the city's taxable value over several years. This economic boost allows the city to offer benefits like frozen utility rates and special assessment holidays.
Nehring affirmed Applied Digital's commitment to paying property taxes as an industrial user and fostering partnerships with communities. He noted that Applied Digital is projected to become North Dakota's largest property taxpayer by 2028 or 2029, with annual contributions exceeding $25 million. He also mentioned projects in or near Ellendale, Harwood, Jamestown, and Oliver County, including a significant development west of Center in Oliver County.
Both Tschider and Nehring pushed back against what they termed misinformation regarding data centers' water usage and noise. Mayor Flaherty recounted being criticized online for his community's relationship with the data center industry, but strongly advocated for data centers as valuable partners that strengthen communities. The discussion underscored the importance of open, fact-based dialogue in community town halls, despite contentious moments.