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Data Center FAQs
Minnkota Power Cooperative, Cass County Electric Cooperative and Applied Digital are collaborating to develop an AI Factory near Harwood, North Dakota. The following are frequently asked questions that address the project’s purpose, operations, community impact and other key details to help the public better understand this development.
What is Minnkota's role in this project?
Minnkota is the wholesale power provider for Cass County Electric Cooperative. Minnkota will provide all power needs for the data center and Cass County Electric will be responsible for distributing that power as the retail electric provider in the area. Applied Digital is the data center developer and operator.
What is Applied Digital?
Applied Digital (Nasdaq: APLD) — Named Best Data Center in the Americas 2025 by Datacloud — is a next-generation digital infrastructure company that designs, develops, and operates high-performance data centers and colocation solutions for artificial intelligence, cloud, networking and blockchain industries. Founded in 2021 and headquartered in Dallas, TX, the company blends hyperscale development expertise with proprietary waterless cooling technology and sustainable engineering practices to deliver secure, scalable compute capacity at unprecedented speed and efficiency. Learn more at
AppliedDigital.com.
What is an AI Factory and why is it coming to Harwood, North Dakota?
- An AI Factory is a specialized data center that hosts specialized Graphic Processing Units (GPUs) and other computer equipment to support artificial intelligence.
- These facilities drive breakthroughs across many fields, including advancing healthcare and education to improving infrastructure and public safety. They power innovations that improve lives, boost the economy and support national security.
- North Dakota is an ideal location for a data center because it offers:
- Affordable, reliable power infrastructure
- A supportive and growing business environment
- Available land with low risk of natural disasters
- A cold climate that naturally reduces cooling costs for equipment
- A skilled workforce focused on technology
How big will this data center be?
The Harwood data center will feature two purpose-built facilities totaling more than 1.8 million square feet. The new site will represent one of the region’s most influential digital infrastructure initiatives to date, with investments projected to exceed $3 billion from Applied Digital plus additional significant investment from Applied Digital’s customer(s).
What benefits will this project bring to the region?
- Tax revenue: The project will generate significant property and business taxes that help fund schools, public safety, parks and other community services.
- Job creation: Once fully operational, the site will employ more than 200 full-time personnel and is expected to peak at around 700 construction workers during development. Additional long-term contractors will also support operations.
- Economic growth: Attracting a technology-focused business may bring more tech companies to the region, helping diversify the local economy.
- Community engagement: Applied Digital has a strong record of working with communities, including at its data center in Ellendale, North Dakota. In 2024, they won a Community Impact Award for a public-private partnership addressing housing shortages in Ellendale, which helped develop homes and apartments to support workforce growth and economic development.
Will the data center stress the power grid or affect reliability?
- Minnkota and Cass County Electric Cooperative have planned carefully for growth in the Fargo area. The necessary energy capacity and infrastructure are in place to integrate the data center while maintaining a strong, stable and resilient grid.
- Data centers help maximize the use of existing electric infrastructure that might otherwise be underused during certain times. This improves system efficiency and benefits all cooperative members.
How much electricity will the data center use?
At peak usage, the data center is expected to use 280 megawatts.
Will this data center increase retail electric bills?
No. In fact, large electricity users can help keep costs more stable for everyone. Electric utilities must maintain and operate essential infrastructure – transmission lines, substations and other equipment – whether electricity demand is high or low.These are fixed costs that are incurred from month to month. When a large consumer like a data center joins the system, they contribute significantly to those fixed costs through the rates they pay. This spreads those expenses over more users, which can help offset other rising costs that put upward pressure on rates. In other words, instead of increasing costs for members, large electricity users can actually help relieve some of that pressure.
Is the data center paying for the infrastructure it needs?
Like other large electricity consumers, the data center pays for the infrastructure it uses.
Will this facility divert resources away from residential or small business consumers?
- No. Minnkota and Cass County Electric Cooperative have served this region on a not-for-profit basis for more than 85 years and remain committed to reliable, safe and affordable electricity for all member-consumers.
- Careful planning ensures new large loads don’t compromise service or investments elsewhere. In fact, data centers can help fund future infrastructure improvements that benefit everyone.
How can community members have a voice in this project?
Applied Digital and local officials are planning to host town hall meetings and will provide other opportunities to ensure community members can ask questions and provide feedback.
How long will construction take and what impacts can we expect?
- The data center is expected to begin construction in September 2025 and be partially operational by the end of 2026 and fully operational in early 2027.
- Work is coordinated with local governments to minimize disruption, with a priority on hiring local contractors and labor.
Will the facility be noisy? How is noise being controlled?
- The project includes sound barriers and strategic setbacks to keep noise low.
- Computer equipment is housed inside precast concrete, sealed buildings, heat exchangers emit minimal noise, and backup generators are used only in emergencies or under maintenance at controlled times and are strictly regulated.
How much water will the data center use? Is this a concern?
Applied Digital uses an innovative, closed-loop water system that eliminates the need for water consumption for cooling the equipment. This system ensures the data center operates sustainably without putting pressure on local water resources. Water consumed at the facility is expected to be less than one single family home per building and is used for bathrooms, kitchens, hand washing and some equipment cleaning.
