Applied Digital Corporation (Nasdaq: APLD) is preparing to break ground in September 2025 on its latest AI infrastructure hub—Polaris Forge 2, a $3 billion, 280-megawatt (MW) “AI Factory” in Harwood, North Dakota.
The project, set to begin initial operations in 2026 and reach full capacity by early 2027, is designed to meet surging demand for AI compute power across industries. With scalability beyond 280MW, Polaris Forge 2 will become one of the most advanced high-performance computing (HPC) campuses in the country, reinforcing North Dakota’s role as a key player in the U.S. AI economy.
"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," said 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 U.S. 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."
Community, Workforce, and Statewide Benefits
The Polaris Forge 2 campus builds on the company’s existing Polaris Forge 1 Ellendale campus, which has already demonstrated Applied Digital’s commitment to investing in rural communities. In Harwood, the company has secured over 900 acres for development and will source power from Cass County Electric Cooperative, ensuring the project integrates into the local energy grid.
Once fully operational, Polaris Forge 2 is expected to employ more than 200 full-time staff, along with long-term contractors, creating a wave of opportunities for technicians, engineers, and support personnel in the region.
North Dakota leaders highlighted not only the scale of the investment but also its long-term community impact.
“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,” said Governor 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.”
Applied Digital’s investment comes at a time when demand for AI and HPC infrastructure is exploding. Hyperscalers, research labs, and enterprises are seeking massive computing resources, and North Dakota—with its abundant energy mix (including renewables), affordable land, and pro-business climate—has positioned itself as an ideal hub.
Local and Regional Partnerships
Energy providers are also preparing to support the massive facility:
- Paul Matthys, CEO of Cass County Electric Cooperative, said: “We are excited to have the opportunity to provide Applied Digital with the power they need to drive innovation and technology in a way that benefits our communities and legacy members. As we work through the final stages of an agreement, we will continue to keep our cooperative values at heart while preparing to meet the needs of future generations.”
- Mac McLennan, CEO of Minnkota Power Cooperative, added: “We’re proud to work with Applied Digital to help bring a state-of-the-art data center to our region. This project represents an important opportunity to drive technological progress and create lasting benefits for our cooperative membership.”
The Greater Fargo Moorhead Economic Development Corporation (GFMEDC) emphasized the project’s workforce impact. Joe Raso, GFMEDC President & CEO, noted: “Having worked with Applied Digital on various aspects of this project, including a recent visit to their Ellendale, ND, datacenter currently under construction, we can see the substantial economic benefit this project will have for the greater Fargo region. EDC staff have already conducted various workforce assessments that show our market’s ability to provide the talent needed to support this facility.”
A Future-Focused Vision
For Harwood, a small city near Fargo, the project is a transformative opportunity. Mayor Blake Hankey said: “This groundbreaking marks the start of a project that will put Harwood on the map as a key player in the future of AI infrastructure. Applied Digital’s investment reflects confidence in our people and our potential, and we’re proud to be part of this moment.”
North Dakota’s Commerce Commissioner Chris Schilken echoed that sentiment: “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. 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.”
Why It Matters
Polaris Forge 2 is more than just a data center project—it represents a $3 billion bet on North Dakota’s future as a hub for AI and next-generation computing. The investment is expected to generate significant tax revenues, attract top technical talent, and expand the state’s role in shaping the U.S. digital economy.
With construction set to begin in September 2025, Applied Digital’s newest campus is poised to become a national benchmark for sustainable, high-capacity AI infrastructure.
Originally reported by Investor Relations.