A campus near Center, North Dakota, would need 430 megawatts of electricity once it runs at full capacity. Montana-Dakota Utilities has now signed an electric service agreement to supply it.
The customer is Applied Digital, which calls the project Polaris Forge 3 and describes it as an AI factory. Montana-Dakota Utilities is a subsidiary of MDU Resources Group. The two companies announced the deal on June 22.
Applied Digital has said initial operations should begin in August 2027. Under the terms, it pays for the energy itself, buying on the market or through other supply arrangements. The utility provides the service, not the fuel bill.
A second site in the state
Polaris Forge 3 adds to what Applied Digital already operates in North Dakota. The company builds campuses designed for dense artificial intelligence workloads, and it has previously announced a 15-year lease with a U.S. hyperscaler rated high investment grade for this location.
Montana-Dakota Utilities already powers the company’s first site, Polaris Forge 1, near Ellendale. The two have worked together there to absorb a large new power load while holding service steady for other customers. MDU says $38.4 million has been credited back to North Dakota customers over the past three years.
Wes Cummins, Applied Digital’s chairman and CEO, put the local payoff in terms of jobs and taxes. “This campus is expected to create approximately 200 full-time jobs, generate meaningful property tax revenue and support long-term growth across Oliver County and the surrounding region,” he said.
Nicole Kivisto, president and CEO of MDU Resources, described the project as a sign of rising interest in the state among big energy users. “We are committed to serving these customers in a way that benefits our communities, supports the regional grid and delivers value to our customers,” she said.
Still needs a regulator’s approval
The agreement is not final in practice. The North Dakota Public Service Commission must approve it, along with other regulatory filings, before the utility can deliver power to the campus.
MDU Resources is part of the S&P SmallCap 600 index and serves more than 1.2 million customers across the Pacific Northwest and Midwest. Its pipeline business runs a natural gas network of more than 3,800 miles.
