Applied Digital Pouring $3 Billion Into North Dakota Data Center Campus

The Dallas-based company has 286 megawatts of capacity operating in North Dakota and another 530 megawatts planned or under construction in the state.

Data center provider Applied Digital is growing its North Dakota footprint with plans for a 280-megawatt campus that it will begin building in September, the company announced Monday.

Dubbed the Polaris Forge 2 — a follow-up to the Polaris Forge 1 at the Dallas-based company’s Ellendale, N.D. campus — the $3 billion project in Harwood, North Dakota, is expected to deliver initial capacity in 2026 and come fully online in 2027.

Applied Digital CEO Wes Cummins said the construction represents the next stage in the company’s rapid growth and as a leader in delivering high performance AI infrastructure, according to a statement that accompanied the announcement.

“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,” he said in a statement. “We have strong interest from multiple parties and are 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.”

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The new 900-acre development will include two facilities, and have capacity for future expansion. Power for the data center has been negotiated with Cass County Electrical Cooperative. The site is expected to have jobs for more than 200 full-time employees as well as long-term contractors, the company stated.

“North Dakota wins when companies like Applied Digital choose to be more than an employer. In Ellendale, they invested in people through workforce housing and created strong local partnerships that strengthen the community,” North Dakota Gov. Kelly Armstrong said in a statement. “We’re excited that they are committing to expanding their presence in North Dakota with a Harwood location, continuing the trend of being a positive corporate citizen and helping to develop our rural communities while contributing to our strong economy.”

During its most recent fourth quarter earnings announced July 30, Applied Digital saw revenue of $38 million, up 41 percent from the year-ago quarter. The company reported a net loss of $26.6 million for the quarter. For the fiscal year ended May 31, Applied Digital reported revenue of $144.2 million, up six percent, with a net loss for the year of $161 million.

Applied Digital has two facilities up and running, a 106-megawatt facility in Jamestown, North Dakota and a 180-megawatt facility in Ellendale, North Dakota. Together they account for all of the company’s revenue generated during the fiscal year, according to U.S. Securities and Exchange Commission filings.

In addition to the just-announced 280-megawatt project, the company is building high-performance compute data centers at its Ellendale campus, which will expand capacity by 400 megawatts. Applied Digital struck a $7 billion, 15-year deal with AI hyperscaler CoreWeave to lease all of that capacity, which it is expected to have running by 2027.

Applied Digital also won $5 billion in funding from Macquarie Asset Management in January, with up to $900 million being directed to fund Applied Digital’s Ellendale campus. Another $4.1 billion of those funds is reserved for Applied Digital’s data center pipeline.