Minnkota Says $110M Data Center Power Project Won't Affect Customers

The cost of the powerline and substation needed by a data center north of Fargo has risen from $75 million to $110 million.

Apr. 2, 2026 at 7:39pm

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A minimalist studio still life photograph featuring a polished metal electrical substation transformer, a bundle of thick copper electrical cables, and a sleek, modern computer server rack, all arranged elegantly on a clean, monochromatic background to conceptually represent the technical infrastructure behind a data center power project.The technical components powering a new data center project north of Fargo represent a major infrastructure investment in the region.Fargo Today

The cost of the powerline and substation needed by a data center north of Fargo has risen from $75 million to $110 million, but developers say the data center company will still cover the entire cost of the project. Applied Digital needs the project to power its data center being built between Fargo and Harwood, which requires 280 megawatts of power at peak demand.

Why it matters

The data center project is a major investment in the region's infrastructure, but the rising costs could have implications for the project's timeline and profitability. However, Minnkota has assured that the increased costs will not be passed on to its customers.

The details

Applied Digital will pay for the project upfront, but it will be owned by Minnkota Power Cooperative. The project includes a substation east of Interstate 29 near the data center and a 345-kilowatt powerline connecting to existing powerlines. Minnkota is hoping to start construction later this month and have the line operating in the fall, but it still needs Public Service Commission approval. The approximately 45% increase in the project cost is related to trying to meet the fall deadline, the scarcity of materials, and tariffs.

  • Minnkota is hoping to start construction later this month.
  • Minnkota is aiming to have the powerline operating in the fall of 2026.

The players

Minnkota Power Cooperative

A regional electric cooperative that will own the powerline and substation project to serve the data center.

Applied Digital

The data center company that will pay for the entire $110 million project upfront.

Cass County Electric

A member of the Minnkota co-op family that will deliver power to the data center.

North Dakota Public Service Commission

The regulatory body that needs to approve the project before construction can begin.

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What they’re saying

“Minnkota's large load customer, Applied Digital, would pay for the project upfront with no 'cost shift' to customers of Cass County Electric, which will deliver power to the data center.”

— Brendan Kennelly, Minnkota Chief Operating Officer

What’s next

The North Dakota Public Service Commission needs to approve the project before Minnkota can begin construction later this month.

The takeaway

Despite the rising costs, the data center project remains a significant investment in the region's infrastructure that will be fully funded by the data center company, ensuring no additional costs are passed on to Minnkota's customers. The project's timeline is still on track, pending regulatory approval.