Central ND News

Gov. Kelly Armstrong, alongside state and local officials, visited Ellendale to inspect the ongoing expansion of the Applied Digital data center and a related housing project. During his visit, Armstrong signed legislation aimed at simplifying the process for establishing on-site backup power generation at data centers and other businesses in North Dakota.

“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 reviewing the projects with Ellendale Mayor Don Flaherty, Dickey County Commission Chair Brandon Carlson, North Dakota Commerce Commissioner Chris Schilken, Bank of North Dakota President Don Morgan, as well as representatives from Applied Digital and Headwaters Development LLC. He highlighted the collaboration among these entities in advancing infrastructure development with state support.

Applied Digital is expanding its high-performance computing AI data center in Ellendale. This facility follows their initial crypto mining site completed in 2023. The current 380,000-square-foot facility is expected to commence operations later this year, with plans for two additional expansions totaling 900,000 square feet each. These developments represent a $5 billion investment and are anticipated to create hundreds of new jobs.

To accommodate incoming workers due to this expansion, Applied Digital has partnered with Headwaters Development and the Bank of North Dakota to construct 20 new homes and a 38-unit apartment complex in Ellendale. This marks the first use of North Dakota’s Rural-Workforce Initiative to Support Housing (R-WISH) pilot program designed for rural communities with populations under 20,000 residents. The initiative aims to support market-rate housing construction when companies expand or establish operations locally.

Armstrong also emphasized another proposed program called Housing for Opportunity, Mobility and Empowerment (HOME), which seeks to address housing needs through public-private partnerships. Senate Bill 2225 proposes $45 million that would be matched by local and private funds for a total investment of $135 million tailored for rural community housing requirements.

With House Bill 1539 now signed into law, on-site backup electric generation exceeding 50 megawatts will no longer fall under the jurisdiction of the North Dakota Public Service Commission’s Siting Act if not connected to the power grid. This change facilitates easier implementation of backup systems while ensuring environmental compliance through local approvals. In testimony supporting this bill, Applied Digital emphasized that such measures protect workers and equipment during unexpected grid disconnections while enhancing overall grid reliability during emergencies. The law will become effective on August 1.