North Dakota Regulators Approve Power Project for Data Center

Minnkota Power Cooperative will build a new substation and transmission line to serve a large data center north of Fargo.

Apr. 16, 2026 at 8:56am

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A highly detailed, glowing 3D illustration of a towering electrical substation with pulsing neon-lit power lines and transformers, conceptually representing the critical infrastructure powering a data center expansion in North Dakota.Glowing power infrastructure illuminates the expansion of data centers in North Dakota, as utility regulators balance the needs of energy-intensive tech with broader ratepayer interests.Bismarck Today

The North Dakota Public Service Commission has approved a temporary variance to allow preliminary construction activities to proceed for a $110 million power project to serve an Applied Digital data center north of Fargo. The project will add a new substation and a 1.74-mile, 345-kilowatt transmission line to connect to existing power infrastructure. Minnkota Power Cooperative will own and operate the facilities, with the data center customer paying for the project upfront.

Why it matters

This project highlights the growing demand for reliable, high-capacity power infrastructure to support the expansion of data centers in North Dakota. As more tech companies seek to build large-scale data facilities in the state, utility regulators must balance the needs of these energy-intensive operations with the interests of other ratepayers.

The details

The Public Service Commission approved a temporary variance to allow Minnkota Power Cooperative to begin site preparation work, such as grading, before the full project is approved. The $110 million Agassiz Transmission Line and Substation project will connect the Applied Digital data center to the regional power grid. Minnkota will own and operate the new substation and 1.74-mile, 345-kilowatt transmission line, but the data center customer will pay for the project upfront, with no costs passed on to other ratepayers.

  • Minnkota hopes to start construction this month and have the line operating in September 2026.

The players

North Dakota Public Service Commission

The state regulatory agency that oversees public utilities and approved the preliminary construction activities for the power project.

Minnkota Power Cooperative

The electric cooperative that will own and operate the new substation and transmission line to serve the Applied Digital data center.

Applied Digital

The data center company that will be the large load customer for the new power infrastructure, paying for the project upfront.

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What they’re saying

“We, too, are watching some of this internally in this state.”

— Sheri Haugen-Hoffart, Public Service Commissioner

“Things that are trade secret protected would be protected, and things that aren't trade secret protected are open public information.”

— Randy Christmann, Public Service Commission Chair

What’s next

The Public Service Commission plans to respond to a letter from U.S. Senator Richard Blumenthal requesting information on data center development, but will note that the agency does not have the authority to regulate data centers directly.

The takeaway

This power project demonstrates North Dakota's efforts to accommodate the growing demand for data center infrastructure, while navigating the balance between the needs of energy-intensive tech companies and the interests of other utility ratepayers in the state.