Hinterlands for the (H)internet: Applied Digital plans $3B AI data center campus in North Dakota

Applied Digital announced plans for a $3 billion AI data center campus in North Dakota, marking the company’s second major project in the state. The 280-megawatt Polaris Forge 2 facility near Harwood will break ground in September 2025, strengthening North Dakota’s position as a strategic hub for AI infrastructure development.

What you should know: The massive data center campus represents Applied Digital’s continued expansion in North Dakota’s favorable business environment.

• Construction begins in September 2025 with initial operations planned for 2026 and full capacity by early 2027.
• The facility will create over 200 permanent jobs plus long-term contractor positions.
• Applied Digital, a U.S.-based data center developer, has secured more than 900 acres and established a power supply agreement with Cass County Electric Cooperative.

The big picture: North Dakota has emerged as an attractive destination for AI infrastructure due to its land availability, energy resources, and supportive regulatory environment.

• This marks Applied Digital’s second large-scale project in the state, following the Polaris Forge 1 facility in Ellendale.
• The company currently operates a 106 MW facility in Jamestown, North Dakota, and is planning a 200 MW facility in Iowa.
• The campus will initially consist of two facilities with expansion options built into the design.

What they’re saying: CEO Wes Cummins emphasized the strategic timing of the project amid growing AI demand.

• “We believe Polaris Forge 2 represents the next stage in Applied Digital’s rapid growth and our position as a leader in delivering high-performance AI infrastructure,” Cummins said.
• “The demand for AI capacity continues to accelerate, and North Dakota continues to be one of the most strategic locations in the country to meet that need.”
• The company is “in advanced negotiations with a U.S. based investment-grade hyperscaler for this campus, making it both timely and prudent to proceed with groundbreaking and site development.”

Strategic partnerships: Applied Digital has forged key technology alliances to support its expanding infrastructure.

• In June, the company announced a partnership with ABB, a Swiss automation company, focused on Applied’s 400 MW greenfield campus in North Dakota.
• The collaboration centers on ABB’s HiPerGuard medium voltage static uninterruptible power supply (UPS) system.
• This medium-voltage approach allows data centers to scale in larger 25 MW blocks while reducing cabling, improving reliability, and enhancing energy efficiency for AI workloads.

In plain English: Traditional data centers use low-voltage power backup systems that work well for smaller operations but become unwieldy as facilities grow. ABB’s medium-voltage UPS system is like upgrading from multiple small generators to fewer, more powerful ones—it can handle bigger chunks of power (25 MW blocks) with less complex wiring, making the whole system more reliable and efficient as AI demands more electricity.