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 provide power to Polaris Forge 3, a proposed AI Factory near Center, North Dakota. At full capacity, the campus will require 430 megawatts of electricity, with Applied Digital responsible for purchasing energy directly from the market or arranging alternative power supply. Initial operations are anticipated to begin in August 2027.

Polaris Forge 3 represents the next phase of Applied Digital's expansion in North Dakota, where the company is developing purpose-built campuses engineered for high-density artificial intelligence workloads. Applied Digital has secured a 15-year lease with a major U.S.-based, investment-grade hyperscaler for the site. The facility is expected to generate approximately 200 full-time jobs and deliver meaningful property tax revenue to Oliver County and surrounding communities.

"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. "We believe AI infrastructure should create value well beyond the campus, and we're proud to continue building in North Dakota."

Montana-Dakota Utilities already serves Applied Digital at Polaris Forge 1, its operational AI Factory near Ellendale, North Dakota. The partnership has demonstrated successful integration of significant power demand while maintaining reliable, cost-effective service, with the companies having 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. "We are committed to serving these customers in a way that benefits our communities, supports the regional grid and delivers value to our customers."

Approval from the North Dakota Public Service Commission is required before Montana-Dakota Utilities can provide power under the agreement. MDU Resources serves over 1.2 million customers across the Pacific Northwest and Midwest, operating electric utility and natural gas distribution services alongside a natural gas pipeline network spanning more than 3,800 miles. Applied Digital, headquartered in Dallas and founded in 2021, designs, builds, and operates high-performance data centers for artificial intelligence, cloud, networking, and blockchain workloads, employing proprietary waterless cooling technology and rapid deployment capabilities.