Applied Digital signs power agreement in Dakota for AI infrastructure expansion.

Montana-Dakota Utilities Co., a subsidiary of MDU Resources Group, has signed an electric service agreement with Applied Digital to supply Polaris Forge 3, a projected AI factory near Center, North Dakota. The campus is designed to require 430 megawatts of electricity at full capacity. Under the agreement, Applied Digital will assume responsibility for energy procurement costs through direct market purchases or other power supply arrangements.

Applied Digital anticipates commencing initial operations in August 2027. This project expands the company's presence in North Dakota, where it develops campuses designed for high-density artificial intelligence workloads. The company has already announced a 15-year lease contract with a U.S. cloud services provider with a high credit rating for the same site.

Polaris Forge 3 strengthens the relationship between electrical infrastructure and advanced computing. AI factories require stable, scalable, and cost-competitive energy capacity to support model training, intensive processing, and cloud services. Wes Cummins, president and chief executive officer of Applied Digital, noted that the campus could generate approximately 200 full-time jobs and property tax revenues, driving economic growth in Oliver County.

Montana-Dakota Utilities already provides service to Applied Digital at Polaris Forge 1, an AI factory located near Ellendale, North Dakota. This existing collaboration has demonstrated the feasibility of integrating significant electrical demand while maintaining reliable service for other customers. MDU Resources indicated that Polaris Forge 3 reflects growing interest in North Dakota as a location for large energy consumers, particularly in data centers, artificial intelligence, and digital infrastructure.

The agreement remains contingent on approval from the North Dakota Public Service Commission. Regulatory authorization will be necessary for Montana-Dakota Utilities to proceed with the electric service outlined in the agreement with Applied Digital.