Montana-Dakota Utilities signs 430-megawatt power supply agreement with AI infrastructure provider Applied Digital for North Dakota AI factory expansion.
Montana-Dakota Utilities Co., a subsidiary of MDU Resources Group, Inc. (NYSE: MDU), has entered into an electric service agreement with Applied Digital Corporation (NASDAQ: APLD) to supply power to Polaris Forge 3, an AI Factory near Center, North Dakota. The proposed campus would require 430 megawatts of electricity at full capacity, marking one of the largest energy commitments tied to AI infrastructure in the region. Under the terms of the agreement, Applied Digital would be responsible for purchasing energy directly from the market or through other power supply arrangements.
Applied Digital anticipates initial operations at the Polaris Forge 3 campus to commence in August 2027, with the site designed to support high-density artificial intelligence workloads. The company has previously announced a 15-year lease with a U.S.-based high investment-grade hyperscaler for this location, signaling strong long-term demand for the facility.
"Polaris Forge 3 is another example of how Applied Digital is turning power into operational AI capacity through disciplined execution and long-term partnerships," said Wes Cummins, Chairman and CEO of Applied Digital. Cummins added that the campus is expected to create approximately 200 full-time jobs and generate meaningful property tax revenue for Oliver County and the surrounding region.
Montana-Dakota Utilities already serves Applied Digital at Polaris Forge 1 near Ellendale, North Dakota, where the partnership has credited $38.4 million back to North Dakota customers over the past three years. "This proposed project reflects the growing interest in North Dakota as a location for large energy users," said Nicole Kivisto, president and CEO of MDU Resources. Kivisto noted the company remains committed to serving customers in a way that benefits communities, supports the regional grid, and delivers value to ratepayers across the state.
The agreement is subject to approval by the North Dakota Public Service Commission before Montana-Dakota Utilities can formally provide power under the deal.
Applied Digital, headquartered in Dallas, Texas and founded in 2021, was named Best Data Center in the Americas 2025 by Datacloud and operates purpose-built campuses using proprietary waterless cooling technology across underserved communities. MDU Resources serves more than 1.2 million customers across the Pacific Northwest and Midwest and operates a natural gas pipeline network and storage system exceeding 3,800 miles across the Northern Plains.