Central ND News

Gov. Kelly Armstrong visited Ellendale, North Dakota, to inspect the ongoing construction of an Applied Digital data center expansion and a related housing project. During his visit, Armstrong signed legislation aimed at streamlining the siting of on-site backup power generation for data centers and other businesses in North Dakota. This measure ensures that these facilities can continue operations during emergencies without relying on the grid.

"Ellendale is a shining example of the public and private sectors working hand-in-hand to drive economic growth and meet workforce needs," Armstrong stated after touring the projects with local officials including Ellendale Mayor Don Flaherty and Dickey County Commission Chair Brandon Carlson.

Applied Digital is expanding its high-performance computing AI data center in Ellendale, which initially started as a crypto mining facility in 2023. The current phase involves a 380,000-square-foot facility expected to commence operations later this year. This will be followed by two more expansions totaling 900,000 square feet each, representing an investment of $5 billion and creating numerous jobs.

To support incoming workers for these expansions, Applied Digital has partnered with Headwaters Development and the Bank of North Dakota to construct new housing in Ellendale. This includes 20 homes and a 38-unit apartment complex under the state's Rural-Workforce Initiative to Support Housing (R-WISH) pilot program. Approved by the state Industrial Commission last June, R-WISH utilizes up to $10 million from BND capital alongside efforts from other state housing agencies.

Armstrong also highlighted another proposed initiative named Housing for Opportunity, Mobility and Empowerment (HOME), designed as a public-private partnership program addressing housing needs. Senate Bill 2225 proposes using $45 million in state funds to leverage additional local and private sector contributions for rural communities.

With House Bill 1539 now signed into law, backup electric generation exceeding 50 megawatts not connected to the grid will no longer fall under the North Dakota Public Service Commission’s Siting Act starting August 1st. Applied Digital emphasized that this change will safeguard their workers and equipment during unexpected grid disconnections while improving overall grid reliability.