North Dakota stands at the forefront of a technological transformation. Surging demand for artificial intelligence computing power draws major investments to the state. Applied Digital Corporation leads this charge with its ambitious Polaris Forge 2 project. This $3 billion initiative near Harwood promises to redefine AI infrastructure.
It highlights the state’s abundant energy resources and strategic advantages. Communities benefit from new jobs and partnerships. The project underscores a shift toward high-tech development in rural areas. Polaris Forge 2 builds on proven successes. It positions North Dakota as a national leader in AI innovation.
Project Overview
Applied Digital Corporation plans to break ground on Polaris Forge 2 in September 2025. The facility targets 280 megawatts of capacity. Initial operations begin in 2026. Full capacity arrives by early 2027. Located near Harwood, a small town north of Fargo, the campus spans over 900 acres. Two main buildings form the core. Expansion potential exists beyond the initial setup.
The design focuses on scalability. It meets growing needs from hyperscalers and enterprises. Applied Digital secures power through Cass County Electric Cooperative. Minnkota Power Cooperative supports energy delivery. This collaboration ensures reliable supply without straining local grids.
Key features include advanced cooling systems. A closed-loop water system minimizes usage. Noise levels remain low, comparable to rustling leaves at a half-mile distance. Security measures protect high-performance computing equipment.
Key Milestones
- Groundbreaking: September 2025.
- Phase One Operational: Second half of 2026.
- Full Capacity: Early 2027.
- Initial Investment: $3 billion.
- Power Capacity: 280 megawatts, with scalability options.
Economic Impact on North Dakota
The project injects significant economic value into the region. Over 200 full-time jobs emerge once operational. Additional roles for contractors follow. Skilled trades like electricians gain opportunities. The facility boosts local tax revenues.
Applied Digital invests in community development. In Ellendale, similar efforts included workforce housing. Harwood may see comparable initiatives. Proximity to Fargo-Moorhead provides housing options for workers.
Governor Kelly Armstrong praises the approach. Companies like Applied Digital act as community partners. They foster rural growth. The Greater Fargo Moorhead Economic Development Corporation supports talent assessments. The region offers a strong workforce pool.
An overview of the projected economic benefits
| Aspect | Details | Impact on Community |
|---|---|---|
| Job Creation | 200+ full-time, plus contractors | Boosts employment in skilled trades |
| Tax Revenue | Increased from facility operations | Funds local services and infrastructure |
| Investment in Housing | Workforce accommodations | Supports population growth |
| Partnerships | With cooperatives and local entities | Strengthens economic ties |
| Overall Economic Lift | $3 billion project value | Drives regional prosperity |
This structure illustrates clear advantages. North Dakota’s pro-business climate attracts such developments.
Technical Aspects of AI Infrastructure
Polaris Forge 2 serves as an AI factory. It houses banks of computers for AI workloads. Hyperscalers lease space for cloud and AI services. The facility ensures efficient operation through climate control.
Applied Digital employs proprietary waterless cooling in parts. This reduces environmental footprint. The design handles high-performance demands. It supports blockchain, networking, and AI tasks.
Interest from investment-grade hyperscalers grows. Advanced negotiations indicate strong demand. The project aligns with global AI trends. Data centers like this power machine learning and data processing.
Additional facts enhance understanding. According to the U.S. Energy Information Administration (EIA), data centers accounted for about 2.5% of U.S. electricity use in 2022, projected to rise to 8% by 2030 due to AI growth (source: eia.gov, “Electric Power Monthly” report, 2023 update). North Dakota’s renewable energy mix, including wind power, makes it ideal. Wind generated 35% of the state’s electricity in 2023 (source: EIA, State Energy Profile for North Dakota).
Advantages of North Dakota’s Location
- Abundant Energy: Access to reliable, affordable power.
- Available Land: Vast spaces for large-scale campuses.
- Cool Climate: Natural aid for cooling systems.
- Low Regulatory Barriers: Speeds up development.
- Technical Talent: Growing pool in nearby urban areas.
These elements make the state competitive globally.
Community and Environmental Considerations
Local residents express concerns. Power reliability and rates top the list. Officials assure no direct rate hikes. Large consumers like data centers spread fixed costs. This offsets pressures on members.
Water usage draws attention. The closed-loop system uses minimal amounts. Noise mitigation keeps impacts low. Harwood hosts a town hall for discussions. Transparency builds trust.
Mayor Blake Hankey views it positively. The project elevates Harwood’s profile. It reflects confidence in local potential. Applied Digital engages in zoning talks. Annexation decisions remain under review.
Environmental responsibility guides the project. Sustainable engineering minimizes impacts. Cooperatives prioritize reliable, affordable power. Minnkota’s 85-year history ensures community focus.
A key fact: The International Energy Agency (IEA) notes that efficient data centers can reduce energy intensity by 20-40% through advanced cooling (source: iea.org, “Data Centres and Data Transmission Networks” report, 2021). Polaris Forge 2 adopts such practices.
Competitive Landscape
Applied Digital faces rivals in the sector. Equinix operates over 260 global data centers. It excels in interconnection and colocation. Digital Realty Trust expands across continents. It offers wholesale capacity and diversified services.
Despite competition, Applied Digital differentiates through rapid deployment. Its focus on AI-specific infrastructure stands out. Long-term leases secure revenues. For instance, Polaris Forge 1 secured $11 billion in contracts.
Stock performance reflects optimism. Shares rose 106% year-to-date in 2025. Zacks ranks it as a Buy. Valuation sits at a premium, indicating growth expectations.
Future Outlook
Polaris Forge 2 marks a pivotal step. It expands Applied Digital’s footprint. North Dakota solidifies its AI leadership. Projects like this attract further investments.
National security benefits arise. U.S. Rep. Julie Fedorchak emphasizes domestic development. Keeping AI infrastructure stateside counters reliance on foreign hubs.
Scalability ensures longevity. Demand for AI compute surges. Enterprises and researchers seek high-performance sites. North Dakota’s resources position it well.
Additional insight: Gartner forecasts global AI spending to reach $297 billion by 2027, up from $184 billion in 2024. This trend supports expansions like Polaris Forge 2.
The project fosters innovation. It creates value for stakeholders. Communities gain from sustained partnerships.
Conclusion
Polaris Forge 2 embodies North Dakota’s ascent in the AI era. This $3 billion endeavor near Harwood delivers cutting-edge infrastructure. Jobs flourish. Economies strengthen. Environmental care integrates seamlessly. Challenges receive proactive responses. The state’s strategic assets shine.
As AI demand escalates, such initiatives pave the way forward. North Dakota transforms into a hub of technological progress. Polaris Forge 2 not only powers computations but ignites lasting prosperity.
Frequently Asked Questions
- What is Polaris Forge 2? Polaris Forge 2 is a 280-megawatt AI data center campus planned by Applied Digital near Harwood, North Dakota.
- When does construction begin? Groundbreaking occurs in September 2025, with initial operations in 2026.
- How many jobs will it create? The facility expects to employ over 200 full-time workers plus contractors.
- What powers the data center? Power comes from Cass County Electric Cooperative, supplied by Minnkota Power Cooperative.
- Does it affect local power rates? Officials state no direct rate increases, as large users help spread fixed costs.
- What cooling system is used? A closed-loop water system minimizes usage, with some waterless cooling elements.
- How does it compare to Polaris Forge 1? Polaris Forge 2 is smaller at 280MW versus Ellendale’s 530MW but designed for similar scalability.
- What are the environmental impacts? Low noise, minimal water use, and efficient energy practices reduce overall effects.
- Who are the main competitors? Equinix and Digital Realty Trust offer global scale in data center services.
- What is the long-term revenue potential? Long-term leases with hyperscalers could generate billions, building on $11 billion from Polaris Forge 1.
