Montana-Dakota Utilities Partners with Applied Digital for New AI Factory

Introduction
Montana-Dakota Utilities Co. has recently taken a significant step forward in the energy sector by announcing an electric service agreement (ESA) with Applied Digital Corporation. The purpose of this partnership is to provide crucial power support for the new AI Factory named Polaris Forge 3, which will be constructed near Center, North Dakota.

Project Overview
At full capacity, Polaris Forge 3 will demand a substantial 430 megawatts of electricity. Under the terms of the ESA, Applied Digital will take charge of acquiring this energy directly from the market or through various alternative power supply methods. With plans set for initial operations to begin in August 2027, the project is expected to bolster the local economy and infrastructure significantly.

Expansion of AI Presence
This new facility will expand Applied Digital's influence in North Dakota, where it has been actively developing tailored campuses aimed at accommodating high-density artificial intelligence operations. This follows a previous announcement regarding a 15-year lease with a prominent U.S. hyperscaler at the same site, demonstrating Applied Digital’s commitment to significant investments in this area.

Economic Impact
Wes Cummins, Chairman and CEO of Applied Digital, emphasized the project's potential benefits by stating, “Polaris Forge 3 is another example of how Applied Digital is turning power into operational AI capacity through disciplined execution and long-term partnerships.” This cooperation is anticipated to create around 200 full-time jobs and generate substantial property tax revenue that will subsequently contribute to the long-term growth of Oliver County and its neighboring regions. The company believes that AI infrastructure should provide value beyond its physical boundaries, and they are enthusiastic about their continued investment in North Dakota.

Existing Relationships
Montana-Dakota Utilities is already collaborating with Applied Digital at an existing location, Polaris Forge 1, near Ellendale, North Dakota. Together, the companies have integrated significant power requirements while ensuring reliable and cost-effective service. Notably, this partnership has returned $38.4 million back to North Dakota customers over the last three years, showcasing the positive financial impact of their combined efforts.

Future Prospects
Nicole Kivisto, President and CEO of MDU Resources, expressed optimism regarding the proposed project by mentioning the increasing interest in North Dakota as a preferred site for large energy consumers. She reiterated their commitment to serve these customers in a manner that is beneficial to the community, enhances the regional grid, and ultimately provides value to customers at large.

Regulatory Approval
Before commencing operations, the ESA and required regulatory filings must receive approval from the North Dakota Public Service Commission. These approvals are essential for Montana-Dakota Utilities to provide power under the agreement with Applied Digital.

About the Companies
MDU Resources Group, Inc. proudly serves over 1.2 million customers across the Pacific Northwest and Midwest, promoting safe, reliable, and environmentally responsible energy solutions. Its extensive pipeline network, which spans more than 3,800 miles, ensures reliable delivery of natural gas across Northern Plains.

Conversely, Applied Digital Corporation, recognized as the Best Data Center in the Americas 2025, is known for its sustainable and high-performance data centers. Established in Dallas, TX in 2021, the company combines innovation in cooling technology with rapid deployment to meet the needs of AI, cloud, and blockchain operations.

Conclusion

The collaboration between Montana-Dakota Utilities and Applied Digital to establish Polaris Forge 3 serves as a testament to the increasing demand for AI capabilities and the importance of reliable energy infrastructure. As North Dakota evolves as a hub for energy-intensive operations, such initiatives will likely play a vital role in shaping the economic landscape of the region, fostering growth and sustainability for years to come.