North Dakota Researcher Publishes Guide on Data Center Impacts
An NDSU researcher has developed a guide for North Dakota policymakers, outlining the potential impacts of AI data centers on electricity bills, water usage, and noise levels. The guide aims to provide accurate information for decision-making while highlighting both benefits and concerns related to data center development in the state. Specific projects by companies like Applied Digital and Atlas Power are mentioned as examples.
Robert Mayo, a research specialist at North Dakota State University's Challey Institute for Global Innovation and Growth, has authored a guide titled "AI Data Centers: What North Dakota Needs to Know." This guide is intended to assist state policymakers in understanding the potential effects of AI data centers on water consumption, electricity costs, and noise levels throughout North Dakota, while also detailing the state's potential economic gains. Mayo clarified that his objective was to deliver impartial, evidence-based information to facilitate informed policy decisions.
Mayo's investigation began with the utilization of natural gas, suggesting that data centers could help address the limited pipeline capacity for North Dakota's natural gas, thereby preventing reductions in oil production. The project evolved as public discourse surrounding data centers intensified. The guide addresses common concerns, referencing an Electric Power Research Institute (EPRI) study that indicated data center growth actually led to decreased electricity rates in some areas. However, it also acknowledges other studies that link data centers to rising utility bills, alongside factors such as inflation and natural gas prices, citing grid capacity issues exemplified by the Atlas Power data center in Williston.
The guide highlights how companies such as Applied Digital are mitigating these concerns. Applied Digital's facilities in Ellendale and Harwood are noted for using "stranded" wind power and employing closed-loop water cooling systems, significantly reducing water consumption. Applied Digital has also committed to covering a substantial portion of grid upgrade expenses, including a $112 million substation and transmission improvements, benefiting all ratepayers. Regarding noise, Mayo explains that while equipment can be loud up close, proper setbacks, as implemented for the Harwood project, can minimize noise levels to be negligible for nearby residents.
The article also reports that Applied Digital is projected to become a leading property taxpayer in counties like Dickey, where its Ellendale facility is the largest. Policymakers are advised to inquire about project setbacks, power sources, cooling systems, and community engagement from developers before approving projects. North Dakota Senate Majority Leader David Hogue has established an interim legislative Artificial Intelligence and Data Center Committee to examine these issues in preparation for the upcoming legislative session, to which Mayo has submitted his guide and a letter.