Applied Digital Invests $75 Million in North Dakota Power Upgrades for AI Expansion

Data center developer Applied Digital is investing $75 million in power system upgrades in eastern North Dakota to support its growing artificial intelligence (AI) infrastructure. The investment will cover the cost of a new electrical substation and a high-voltage powerline needed for the Polaris Forge 2 data center currently under construction near Interstate 29 [1].

Expanding AI Capacity in North Dakota

Applied Digital’s expansion underscores North Dakota’s increasing importance as a hub for AI infrastructure. The company broke ground on the $3 billion Polaris Forge 2 campus in September 2025, with initial operations slated for 2026 and full capacity expected in early 2027 [1]. The 280-megawatt (MW) facility is designed to scale beyond its initial capacity and builds upon the success of Applied Digital’s existing Polaris Forge 1 campus in Ellendale, North Dakota [1].

Strategic Location and Infrastructure

Applied Digital chose North Dakota due to its abundant energy resources, available land, and a business-friendly environment [3]. The company has secured power through Cass County Electric Cooperative, a member-owned nonprofit, and has contracted over 900 acres for the Polaris Forge 2 campus [3].

Investment Details and Job Creation

The $75 million investment in power infrastructure will ensure reliable and sufficient energy supply for the growing AI computing center. The Polaris Forge 2 facility is expected to create more than 200 full-time jobs, along with numerous long-term contractor positions [3]. The initial buildings will cover just over 900,000 square feet, slightly smaller than the Amazon distribution center located nearby [3].

Applied Digital’s Growth and AI Focus

Applied Digital Corporation (Nasdaq: APLD) specializes in purpose-built data centers designed for high-performance AI workloads [2]. The company’s “AI Factories” are designed to efficiently convert power into operational AI capacity, supporting both AI training and inference [2]. In March 2026, Applied Digital closed a $2.15 billion deal to further build out the Harwood AI campus [4].