Wes Cummins, Applied Digital’s CEO, explained that Ellendale was a strategic choice for Polaris Forge 1 due to its naturally cool climate, promoting energy efficiency and lowering cooling costs.
“The region also offers strong power capacity, with access to renewable energy sources that align with our sustainability goals,” he said. “Coupled with a robust infrastructure and a supportive, forward-looking community, Ellendale provides the ideal environment to scale next-generation digital infrastructure.”
North Dakota as prime real estate
The location of North Dakota has offered a broad range of advantages for Applied Digital, particularly when it comes to supporting its AI infrastructure ambitions. For one, the state has expansive energy resources and a range of renewables that provide the power and scalability needed for energy-intensive AI Factory operations.
Additionally, its cooler temperatures are able to support thermal efficiency and therefore minimise the need for mechanical cooling.
“North Dakota’s commitment to fostering tech-forward industries creates an environment where digital infrastructure can thrive, not just for today, but well into the future,” Cummins said.
Having recently expanded in the Fargo area, Applied Digital achieved an important milestone in its commitment to growing North Dakota as a leading AI hub. It complements the Polaris Forge 1 Campus, further supporting the company’s strategy to build a network of scalable, energy-efficient AI facilities across the US.
“With North Dakota’s abundant renewable energy, climate and collaborative communities, we’re uniquely positioned to help drive innovation, create jobs and support economic diversification across the region,” Cummins added.
Building the future of data centre design
When it comes to building the data centre, Applied Digital was confronted with two significant challenges in Ellendale: attracting and retaining skilled labour.
“To overcome a regional shortage of skilled labour, we embraced prefabrication. By building the most complex components in controlled, off-site factories, we could shift the bulk of the work to areas with more available talent,” Cummings explained.
Another challenge the company had to confront was retaining talent throughout the harsh winters of North Dakota. Cummings noted how the cold and isolation often led to high turnover during the construction process.
“We’ve seen success with a direct labour incentive programme, where we deposit a portion of each worker’s bonus into an escrow account that grows the longer they stay,” he added. “This created a positive financial reason to see the project through. We also stepped up the game for on-site comfort, providing amenities like luxury bathrooms and reduced meal rates to show our team that their well-being is a priority.”
Despite initial costs, Applied Digital found that prefabrication has offered long-term value opportunities by enabling projects to stay on time and to budget.
“For data centres, time to market is a critical metric that directly impacts revenue. Prefabrication allows for simultaneous work on site preparation and module construction in a factory,” Cummins explained. “This parallel process can cut overall project timelines compared to traditional builds, which can be delayed by weather, material shortages, and labour issues.”
He added: “Prefabrication enables data centres to begin generating revenue sooner, offsetting any higher upfront costs. Ultimately, the schedule certainty and faster return on investment make prefabrication a solid choice for data centre builds.”
The Ellendale location now acts as the foundation for Applied Digital’s broader strategy across North Dakota, as the company looks to further scale its AI footprint. Just recently, the company agreed to an additional 150MW lease with CoreWeave at Polaris Forge 1, further bolstering Applied Digital’s strategic expansion into advanced compute infrastructure.
Under the terms of this new long-term lease agreement, the total critical IT capacity across these three long-term lease agreements will encompass 400MW across the campus.
“Ellendale is not just a location; it’s a blueprint for how we’re building in North Dakota: with intention, long-term partnership, and alignment between community needs and next-gen AI infrastructure,” Cummins said.
Going beyond digital infrastructure
With this in mind, the company is committed to supporting and strengthening the local Ellendale community and has built strategic partnerships, including the R-WISH rural housing programme and investing in workforce housing to support long-term growth.
“Our collaboration with the town and its officials on annexation and infrastructure projects reflects our intent to be a true community partner, not just a corporate presence,” Cummins said. “Looking ahead, we’re pleased to formally launch our philanthropic arm, Applied Digital Cares, which will focus on further supporting education and quality of life in the communities where we operate.”
He added: “The response from Ellendale has been incredibly positive, and we’re proud to be part of its ongoing transformation.”
As AI workloads continue to grow, the Ellendale campus hopes to grow and combine cutting-edge infrastructure with energy-efficient design. The priority, Cummins said, is to scale.
“We’re integrating advanced cooling technologies and modular power systems to optimise performance and sustainability as demand intensifies. Partnering closely with CoreWeave will provide seamless deployment of AI workloads that require massive compute resources and flexibility,” he explained.
“Ellendale won’t just keep pace with the AI revolution; it will help define the future of high-performance, sustainable AI infrastructure, all while fostering deep, long-term partnerships with the local community.”
All images courtesy of Applied Digital.
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