Grand Forks city, county governments prepare for the possibility of future data centers
Grand Forks city and county governments in North Dakota are proactively preparing for potential future data center developments by discussing and reviewing model ordinances and policies. This preparation is influenced by the economic impacts and community concerns seen in other North Dakota communities with existing data centers. Discussions also include securing adequate power sources with local utilities.
Grand Forks city and county governments are proactively developing policies and ordinances to regulate future data center proposals, learning from experiences in other North Dakota communities. County Administrator Tom Ford stated the need for a clear process, similar to those for wind or solar farms, for when data center projects are proposed.
City Administrator Todd Feland highlighted Grand Forks' existing power infrastructure and bitcoin mining operations by Core Scientific and Sundog Mining, hoping to attract more capital-intensive AI data centers that require more employees. The city and county are in talks with Minnkota Power Cooperative, Nodak Electric Cooperative, and Xcel Energy to assess the existing power grid's capacity, with a potential natural gas pipeline also considered for future power needs. There are also discussions about the Grand Forks Air Force Base potentially hosting a data center.
Examples from other areas in North Dakota inform Grand Forks' planning. Near Ellendale, Applied Digital operates a blockchain facility and two AI data centers, with two more under construction. Ellendale Mayor Don Flaherty reported significant increases in the city's tax base due to these facilities but acknowledged 'growing pains' from construction impacts, traffic, and housing strain, with local sentiment split. Applied Digital is also building a $3 billion data center near Harwood, which has faced local criticism. Statewide, concerns about environmental impact, power usage, noise pollution, and taxpayer burden persist.
At the state level, a special legislative session discussed banning non-disclosure agreements between data center developers and public officials, but the bill failed. A proposed statewide moratorium on data center development also did not advance. Both Grand Forks city and county officials are aware of these concerns and aim to mitigate them, ensuring that any future data center development benefits the community without burdening utility users with increased rates.