Applied Digital secured 430 megawatt power purchase agreement with MDU Resources for North Dakota AI factory.
Applied Digital Corp. (NASDAQ: APLD) has signed an electric service agreement with MDU Resources Group to supply power to its North Dakota-based AI factory, Polaris Forge 3.
The agreement was finalized on June 23, marking a significant milestone in the company's expansion of artificial intelligence infrastructure in the region.
Polaris Forge 3 will require 430 megawatts of electricity at full capacity, underscoring the enormous energy demands of modern AI workloads. Applied Digital will bear all costs associated with procuring that energy, whether through direct market purchasing or separately negotiated power supply agreements.
Operations at the facility are expected to begin in August 2027, giving the company roughly a year to complete construction and commissioning.
The Polaris Forge 3 campus is designed to support high-density AI workloads. Upon completion, it will substantially expand Applied Digital's presence across North Dakota.
CEO and Chairman Wes Cummins highlighted the project's broader economic impact. "This campus is expected to create approximately 200 full-time jobs, generate meaningful property tax revenue, and support long-term growth across Oliver County and the surrounding region," Cummins said. "We believe AI infrastructure should create value well beyond the campus, and we're proud to continue building in North Dakota."
Applied Digital is a designer and operator of digital infrastructure solutions for the AI sector and high-performance computing market, offering GPU computing, crypto mining infrastructure, and data center management services.
The company has been actively developing purpose-built sites across North Dakota, positioning the region as a central hub for its long-term infrastructure strategy.
At the time of the agreement's announcement, APLD shares were down 4.37%, while MDU Resources Group gained 0.83%, reflecting mixed market sentiment around the deal.
The Polaris Forge 3 agreement reinforces Applied Digital's ambition to become a major provider of large-scale, reliable AI infrastructure as demand for compute capacity accelerates across the industry.