FAQ: A New Data Center in Our Community
Cass County Electric Cooperative is committed to keeping members informed and addressing questions as new developments arise. A major data center project is planned within our service territory—bringing significant investment to both our community and our electric system.
Applied Digital is building a data center near Harwood, North Dakota. Power for the facility will be provided by Minnkota Power Cooperative and Cass County Electric Cooperative. Applied Digital will also cover the cost of all necessary infrastructure improvements. To help members and the public better understand this development, we’ve compiled answers to frequently asked questions about the project’s purpose, operations, and community impact.
What is Applied Digital?
Applied Digital (Nasdaq: APLD)
— Named Best Data Center in the Americas 2025 by Datacloud — is a next-generation digital infrastructure company that designs, develops, and operates high-performance data centers and colocation solutions for artificial intelligence, cloud, networking and blockchain industries. Founded in 2021 and headquartered in Dallas, TX, the company blends hyperscale development expertise with proprietary waterless cooling technology and sustainable engineering practices to deliver secure, scalable compute capacity at unprecedented speed and efficiency. Learn more at AppliedDigital.com.
What is an AI Factory and why is it coming to Harwood, North Dakota?
An AI Factory is a specialized data center that hosts specialized Graphic Processing Units (GPUs) and other computer equipment to support artificial intelligence.
These facilities drive breakthroughs across many fields, including advancing healthcare and education to improving infrastructure and public safety. They power innovations that
improve lives, boost the economy and support national security.
North Dakota is an ideal location for a data center because it offers:
• Affordable, reliable power infrastructure
• A supportive and growing business environment
• Available land with low risk of natural disasters
• A cold climate that naturally reduces cooling costs for equipment
• A skilled workforce focused on technology
How big will this data center be?
The Harwood data center will feature two purpose-built facilities totaling more than 1.8 million square feet. The new site will represent one of the region’s most influential digital infrastructure initiatives to date, with investments projected to exceed $3 billion from Applied Digital plus additional significant investment from Applied Digital’s customer(s).
Will the data center stress the power grid or affect reliability?
Minnkota and Cass County Electric Cooperative have planned carefully for growth in the Fargo area. The
necessary energy capacity and infrastructure are in place to integrate the data center while maintaining a strong, stable and resilient grid.
Data centers help maximize the use of existing electric infrastructure that might otherwise be underused during certain times. This improves system efficiency and benefits all cooperative members.
Will this data center increase retail electric bills?
No. In fact, large electricity users can help keep costs more stable for everyone. Electric utilities must maintain and operate essential infrastructure – transmission lines, substations, and other equipment –whether electricity demand is high or low. These are fixed costs that are incurred from month to month. When a large consumer like a data center joins the system, they contribute significantly to those fixed costs through the rates they pay. This spreads those expenses over more users, which can help offset other rising costs that put upward pressure on rates. In other words, instead of increasing costs for members, large electricity users can actually help relieve some of that pressure.
Is the data center paying for the infrastructure it needs?
Yes. Like other large electricity consumers, the data center pays for the infrastructure it uses.
Will this facility divert resources away from residential or small business consumers?
No. Minnkota and Cass County Electric Cooperative have served this region on a not-for-profit basis for more than 85 years and remain committed to reliable, safe and affordable electricity for all memberconsumers.
Careful planning ensures new large loads don’t compromise service or investments elsewhere. In fact, data centers can help fund future infrastructure improvements that benefit everyone.
How long will construction take and what impacts can we expect?
The data center is expected to begin construction in September 2025 and be partially operational by the end of 2026 and fully operational in early 2027.
Work is coordinated with local governments to minimize disruption, with a priority on hiring local contractors and labor.
Will the facility be noisy? How is the noise being controlled? The project includes sound barriers and strategic setbacks to keep noise low.
Computer equipment is housed inside precast concrete, sealed buildings,
heat exchangers emit minimal noise, and backup generators are used only in emergencies or under maintenance at controlled times and are strictly regulated.
How much water will the data center use? Is this a concern? Applied Digital uses an innovative, closed-loop water system that eliminates the need for water consumption for cooling the equipment. This system ensures the data center operates sustainably without putting pressure on local water resources. Water consumed at the facility is expected to be less than one single family home per building and is used for bathrooms, kitchens, hand washing and some equipment cleaning.
What benefits will this project bring to our members and community? Economic impact: Hundreds of construction jobs and dozens of long-term technical positions. Local businesses will also benefit from increased activity in the region.
Tax base growth: Data centers are major contributors to local and state tax revenues, helping to fund schools, infrastructure, and services.
Grid strength: A steady, predictable load like this helps utilities plan more effectively, improving system efficiency and reliability.
Innovation: Projects like these position North Dakota as a hub for technology and energy innovation.
Questions?
We know this project may raise questions, and we are committed to transparency every step of the way. If you’d like more details or have specific concerns, please reach out to our team at 701-356-4400 or info@kwh.com.
You can also find updates at casscountyelectric.com/data-center.
Know the Difference:
Data Center:
• A facility full of servers and networking equipment that stores, processes, and manages digital information.
• The “backbone of the internet” — supporting things like cloud storage, online banking, healthcare systems, streaming services, and business operations.
• Their main focus is reliability and security so that services are available 24/7.
• Uses a steady, predictable load of electricity. Utilities can plan for this, which often strengthens grid reliability.
Cryptocurrency Mining Operation:
• A mining facility runs powerful computers specifically designed to solve complex mathematical problems.
• These problems validate cryptocurrency transactions (like Bitcoin), and the miners earn digital coins as a reward.
• Unlike data centers, mining facilities don’t provide broader public services — their purpose is primarily profit-driven currency generation.
• Extremely high and less predictable power use, with sudden surges. This can stress the grid and affect electricity availability and costs for others.