Officials Tout the Benefits of Data Centers in North Dakota
During a panel discussion at the Lignite Energy Council’s annual conference in Bismarck, officials and company representatives highlighted data centers' benefits to North Dakota communities, citing property tax growth and population increase. They also addressed public scrutiny regarding environmental concerns and operational impacts, advocating for strong partnerships between communities and developers. The discussion used Applied Digital's campus near Ellendale as a key example.
At the Lignite Energy Council’s annual conference in Bismarck, North Dakota, a panel comprising Stacy Tschider, CEO of Rainbow Energy Center, Dave Nehring, Director of Local & Regional Affairs for Applied Digital, and Ellendale Mayor Don Flaherty, discussed the benefits and challenges associated with data center development in the state. They emphasized that data centers contribute significantly to property tax bases, increase local populations, and create opportunities for North Dakota's energy resources.
Mayor Flaherty highlighted Ellendale’s positive experience with Applied Digital, which operates a data center campus near the city. He noted that the project is expected to bring 300 to 350 full-time employees, leading to a projected population growth of 400 to 600 people within five years for the city of 1,100. Flaherty also stated that Applied Digital's property annexation in early 2025 is expected to increase the city's taxable value more than tenfold. Nehring added that Applied Digital is projected to become North Dakota's largest property taxpayer by 2028 or 2029, paying over $25 million annually.
The panelists also addressed the growing public scrutiny and criticisms, which often focus on the size, noise, proximity to homes, and water usage of data centers. Nehring and Tschider countered these concerns, suggesting that much of the opposition stems from misinformation. They stressed the importance of collaborative partnerships between data center companies and local governments, acknowledging that community town halls can sometimes be contentious but are vital for open, fact-based discussions. Mayor Flaherty dismissed online accusations against him for working with developers, reaffirming the partnership's purposeful nature.