Montana-Dakota Utilities Announces Electric Service Agreement with Applied Digital for Proposed AI Factory

2026-06-22 · Source: The AI Journal · Field: Technology & Digital — Artificial Intelligence & Machine Learning, Cloud Computing & IT Infrastructure · Depth: Fundamental Awareness, short

Summary

Montana-Dakota Utilities Co., a subsidiary of MDU Resources Group, Inc., has signed an electric service agreement (ESA) with Applied Digital Corporation to power Polaris Forge 3, a new AI Factory near Center, North Dakota. This campus is projected to require 430 megawatts of electricity at full capacity, with Applied Digital responsible for energy procurement. Initial operations are anticipated to begin in August 2027. This expansion builds on Applied Digital's existing presence in North Dakota, where it operates Polaris Forge 1 near Ellendale. The project is expected to create approximately 200 full-time jobs and generate significant property tax revenue for Oliver County, reflecting growing interest in North Dakota for large energy users. The agreement requires approval from the North Dakota Public Service Commission.

Key takeaway

For investors evaluating infrastructure plays in the AI sector, this agreement highlights the critical role of utility partnerships and regional economic development in scaling AI compute capacity. Your assessment should consider the regulatory approval process by the North Dakota Public Service Commission as a key milestone. This expansion demonstrates a model for integrating significant power demand while aiming for reliable service and local economic benefits.

Key insights

Applied Digital and Montana-Dakota Utilities expand AI infrastructure in North Dakota, leveraging partnerships for large-scale compute.

Principles

• AI infrastructure should create value beyond the campus.
• Disciplined execution and partnerships enable AI capacity.
• Large energy users benefit communities and regional grids.

Topics

• AI Factory
• Applied Digital Corporation
• Montana-Dakota Utilities
• Electric Service Agreement
• North Dakota
• Data Center Infrastructure
• Energy Demand

Best for: Executive, Investor, Director of AI/ML

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Editorial summary, takeaway, and curation by AIssential. Original article published by The AI Journal.