Applied Digital signs major electric service agreement with MDU Resources for proposed AI compute factory expansion.

Applied Digital has secured a major electric service agreement with MDU Resources to support a proposed AI compute factory expansion. The agreement represents a critical infrastructure component for Applied Digital's growth plans in building large-scale AI computing capacity.

The deal underscores the growing importance of reliable, long-term power supply commitments for hyperscale AI facilities. Data center operators pursuing rapid capacity expansion require substantial and secured electrical infrastructure, making utility partnerships like this foundational to deployment timelines.

For the broader AI buildout, the agreement signals continued momentum in establishing compute infrastructure outside traditional hyperscaler data center footprints. As companies compete for GPU capacity and power-constrained regions seek to host compute workloads, securing utility-backed power agreements has become a critical competitive advantage in the infrastructure race.