The main data center negatives occur in the construction phase, Applied Digital CEO says
Applied Digital CEO Wes Cummins discussed backlash against data centers and a proposed Texas ban on new data center permits pending additional regulations. He said Applied Digital does not build in Texas and emphasized the company’s partnership with small communities, citing Harwood, North Dakota, where voters overwhelmingly rejected an initiative targeting its facility.
Applied Digital Chairman and CEO Wes Cummins said the company is headquartered in Texas but currently builds data centers primarily in North Dakota, along with projects in Louisiana and Alabama. His comments came amid political backlash against data centers and a call for a moratorium on Texas permits until laws protecting residents are enacted. Cummins said additional guardrails on siting, construction and community benefits could be appropriate, while arguing that responsible developers should be allowed to continue projects.
Cummins pointed to Harwood, North Dakota, as an example of a positive relationship with a host community. The city’s mayor said Applied Digital had been honest, responsive and beneficial to Harwood, and Cummins said voters rejected a related initiative by 76%. He cited more than $45 million in electricity savings for local ratepayers and said the company uses little water, while acknowledging that construction creates traffic and other short-term disruptions. The interview also addressed Applied Digital’s financing needs and debt costs as it expands capacity.