Applied Digital says it is expanding in North Dakota in order to meet surging demand for compute power.
Breaking ground in September 2025, the site – referred to as Polaris Forge 2 – is a $3 billion AI Factory and seeks to advance Applied Digital’s rapid growth and reinforce North Dakota as a strategically important destination for AI infrastructure in the US.
Based in Harwood, North Dakota, the AI factory is designed for 280 megawatts (MW) and has the capacity to scale beyond scheduled operations in 2026 and full capacity in early 2027.
“We believe Polaris Forge 2 represents the next stage in Applied Digital’s rapid growth and our position as a leader in delivering high-performance AI infrastructure,” says Wes Cummins, CEO of Applied Digital. “The demand for AI capacity continues to accelerate and North Dakota continues to be one of the most strategic locations in the country to meet that need.
“We have strong interest from multiple parties and are in advanced negotiations with a US based investment-grade hyperscaler for this campus, making it both timely and prudent to proceed with groundbreaking and site development. We believe this new campus will strengthen our operations, increase our ability to scale and create lasting value for both our customers and the communities we serve.”
The news comes as demand for AI computing capacity continues to boom, as data centre hyperscalers and businesses are seeking infrastructure that is both high-performance and scalable.
Polaris Forge 2 aims to build on the success of Applied Digital’s Polaris Forge 1 Ellendale campus, expanding the company’s presence in a state that offers abundant energy, available land and a pro-business climate.
The proposed development initially includes two facilities with capacity for future expansion, with Applied Digital contracting more than 900 acres for the campus and secured power through Cass County Electric Cooperative.
Once fully operational, the site is expected to employ more than 200 full-time employees, in addition to long-term contractors.
“North Dakota wins when companies like Applied Digital choose to be more than an employer. In Ellendale, they invested in people through workforce housing and created strong local partnerships that strengthen the community,” says Governor of North Dakota, Kelly Armstrong.
“We’re excited that they are committing to expanding their presence in North Dakota with a Harwood location, continuing the trend of being a positive corporate citizen and helping to develop our rural communities while contributing to our strong economy.”
North Dakota enjoys abundant power resources, available land and growing technical talent, which Applied Digital believes sets it up as a potential hub for AI innovation. With this in mind, Polaris Forge 2 is expected to advance the company’s mission to build sustainable, high-performance digital infrastructure that powers innovation and delivers both economic and community benefits.
“Applied Digital’s investment in Ellendale is a model for rural innovation – bringing high-tech infrastructure, workforce housing and long-term economic opportunity to North Dakota,” shares Commerce Commissioner, Chris Schilken.
“Their expansion into Harwood builds on that success and is exactly the kind of strategic partnership and investment that strengthens our communities and positions our state for the future.”
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