Data center developer invests east, looks west

Data center developer Applied Digital is making a significant investment of $75 million in power system upgrades for its new facility near Harwood, North Dakota. This includes funding an electrical substation and high-voltage powerline to support the 280-megawatt demand of its AI data center, which Minnkota Power Cooperative will own and operate. The Agassiz Transmission Line and Substation project is set for a Public Service Commission public hearing on April 2 in Fargo, with full commercial operation anticipated by early 2027. Simultaneously, Applied Digital is exploring expansion opportunities in western North Dakota, notably in Oliver County, where it held an informational meeting. This has led to swift action by local governing bodies; the Oliver County Commission voted for a 180-day moratorium on data centers to develop new zoning rules, and Mercer County earlier passed a one-year moratorium. Residents have voiced concerns about noise pollution, extensive water usage for cooling, and the massive power demands that could impact utility bills. The Dakota Resource Council, an environmental advocacy group, supports transparent, fairly structured data center projects that benefit host communities, emphasizing that cooperative member-owners should not bear increased electric rates or financial risks for large corporate users. While Cass County Electric Cooperative, which will supply power to the Harwood data center, states the project will not raise rates for existing customers and aids infrastructure upgrades, the broader issue of data center power consumption has drawn attention, including reference to President Donald Trump's "Ratepayer Protection Pledge."