July 16, 2026

North Dakota Approves Power Project for AI Data Center

By:
Dallas Bond

North Dakota's Public Service Commission has granted approval for a significant power infrastructure project intended to support a cutting-edge data center currently under construction north of Fargo.

The $110 million project will establish a new substation near the Applied Digital data center, located east of Interstate 29 between Harwood and Fargo. A high-voltage powerline will connect this substation to existing powerlines approximately two miles to the south and west.

Large-Scale Energy Demand for AI Operations

The project, named the Agassiz Transmission Line and Substation, will address the substantial energy needs of the Applied Digital data center. The facility will require up to 280 megawatts of electricity to ensure its high-performance computers - used for artificial intelligence applications - operate smoothly and remain cool. Companies leasing space within the data center will use these AI capabilities for various purposes.

Minnkota Power Cooperative, which oversees the project, emphasized that the cost will not impact customers. "Minnkota officials told the Public Service Commission that its large-load customer will pay for the project. That customer is data center developer Applied Digital", the article stated.

Cass County Electric, a member of the Minnkota cooperative network, will deliver power to the facility.

Rising Costs Fully Covered by Developer

While the estimated cost of the project has risen from $75 million to $110 million, Minnkota confirmed that Applied Digital will fully cover the expense. This assurance, provided during the commission's review, allowed the three-person body to unanimously approve the project without any discussion.

Construction is already underway, as Minnkota had previously obtained a waiver to begin earlier this month. The cooperative aims to bring the powerline into operation by September.

Strategic Placement for Efficiency

The new infrastructure will be built on property already owned by Minnkota, ensuring a seamless connection to existing powerlines along Interstate 29. This approach is expected to streamline the construction process and minimize disruption in the area.

With the Public Service Commission's approval secured, the Applied Digital data center moves one step closer to becoming a vital hub for artificial intelligence development in the region, powered by robust and reliable energy infrastructure.

Read the source

Keywords:
AI data center,Minnkota Power Cooperative,Applied Digital,substation,North Dakota
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