Data Center Developer Backs Power Upgrades Near Fargo

Applied Digital invests $75 million in electrical infrastructure to support new AI data center

Mar. 23, 2026 at 10:52am

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Data center developer Applied Digital is investing $75 million in power system upgrades in eastern North Dakota as it looks to expand into the western part of the state. The company will cover the cost of an electrical substation and high-voltage powerline that it needs for a new data center it is building near Interstate 29 between Fargo and Harwood. The upgrades will benefit the regional power grid and other customers, according to Minnkota Power Cooperative, which will own and operate the new facilities.

Why it matters

Data centers have faced pushback in some communities due to concerns over noise, water usage, and rising utility costs. This project highlights how data center developers are working with local utilities to fund critical power infrastructure upgrades that can benefit the broader region, not just the data center itself.

The details

Applied Digital will cover the $75 million cost of the new substation and powerline that Minnkota Power Cooperative will own and operate. The project, called the Agassiz Transmission Line and Substation, will include a substation west of Interstate 29 north of Fargo and a 345-kilowatt powerline going north about a mile and crossing the interstate to the data center. Cass County Electric Cooperative will provide power to the data center, which is expected to roughly double the co-op's peak demand.

  • Work on the substation and powerline could begin in April and be complete by September.
  • The data center is expected to be in full commercial operation in early 2027.

The players

Applied Digital

A data center developer that is investing $75 million in power system upgrades in eastern North Dakota as it looks to expand into the western part of the state.

Minnkota Power Cooperative

The cooperative that will own and operate the new electrical substation and powerline being built to support Applied Digital's data center.

Cass County Electric Cooperative

The cooperative that will provide electric power to Applied Digital's data center, which is expected to roughly double the co-op's peak demand.

Ben Fladhammer

A spokesperson for Minnkota Power Cooperative who said Applied Digital's covering the upgrades benefits the grid and other customers in the region.

Paul Matthys

The president and CEO of Cass County Electric Cooperative, who said the data center would about double the peak demand for power from the co-op.

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What they’re saying

“That infrastructure provides tremendous benefit to the southern Red River Valley.”

— Ben Fladhammer, Spokesperson, Minnkota Power Cooperative

“We have right now, the ability to serve that data center without disrupting our members, without disrupting the entire system or the grid.”

— Paul Matthys, President and CEO, Cass County Electric Cooperative

What’s next

A Public Service Commission public hearing on the power project is set for April 2 in Fargo.

The takeaway

This project demonstrates how data center developers can work collaboratively with local utilities to fund critical power infrastructure upgrades that benefit the broader community, rather than just the data center itself. It highlights the importance of proactive planning and investment to support the growing demand for data center services while addressing community concerns.