What's Happening?
Applied Digital, a Dallas-based company, is set to expand its operations in North Dakota with a $3 billion investment in a new data center. The Polaris Forge 2 project, located in Harwood near Fargo, will cover 900 acres and provide 280 megawatts of power. This facility will be Applied's third data center in the region, focusing on artificial intelligence and cloud computing infrastructure. The project is expected to begin construction in September, pending local permit approvals. Applied Digital is negotiating with large tech companies, referred to as 'hyperscalers,' for the use of the facility. The data center will utilize power from Cass County Electric Cooperative and employ a closed-loop water system to minimize environmental impact.
Why It's Important?
The expansion of data centers in North Dakota represents significant economic growth and technological advancement for the region. Applied Digital's investment will create jobs and strengthen local infrastructure, contributing to the state's economy. The project aligns with North Dakota's strategy to attract power-intensive industries, leveraging its abundant energy resources. The use of a closed-loop water system addresses environmental concerns associated with data centers, showcasing a commitment to sustainable practices. This development also highlights the growing demand for data processing capabilities driven by artificial intelligence and cloud computing.
What's Next?
Applied Digital will continue to work on securing necessary permits and finalizing contracts with power providers. The company aims to start construction in September and employ 200 people full-time once the facility is operational. Local leaders, including Governor Kelly Armstrong, have expressed support for the project, anticipating positive impacts on rural communities and the state's economy. The success of this expansion could lead to further investments in North Dakota's data center industry.
Beyond the Headlines
The project underscores the importance of infrastructure development in rural areas, providing opportunities for economic diversification and technological innovation. It also highlights the role of corporate citizenship in fostering community partnerships and supporting local development.
