What You Should Know About Data Centers

As Aaron Birst of the North Dakota Association of Counties put it, "if somebody had taken a little time to talk to a local, they could have avoided those problems." That's how data centers earn a bad name: noise next to neighborhoods, strained grids, and companies that treat the community as an afterthought.

Can Data Centers Be Built Responsibly? What Separates a Well-Planned Project From One That Creates Problems?

Yes, and North Dakota has already proven it. Contrast Williston with Ellendale, where Applied Digital built a major data center and became a very good neighbor.

The company deliberately sited its facility away from homes to head off noise and traffic complaints. It bought "stranded power," electricity from local wind farms that exceeded what the transmission lines could carry and would otherwise have gone to waste. That purchase actually cut local electric rates by five million dollars in 2023, even as the facility drew about 180 megawatts. Before construction began, the company held open town hall meetings, listened to concerns, and even sent a representative to visit with the local coffee club.

Three things separate a good project from a bad one: put the facility away from neighborhoods, plan the power supply so residents' bills go down instead of up, and earn the community's trust before you break ground. A project can meet every technical regulation on the books and still fail. Public support isn't optional. It's the whole ballgame.

If we insist that developers pick smart sites, plan their power, and engage our communities from day one, North Dakota can lead this industry.

What Opportunities Could Data Centers Create for North Dakota?

Enormous ones, if we're smart about it. North Dakota has exactly what this industry needs: abundant energy from Bakken natural gas and wind, wide open land far from dense neighborhoods, and a cool climate that lowers cooling costs.

The state already offers a sales tax exemption on data center hardware and software, and states compete hard for these projects because they bring construction jobs, permanent operations jobs, and a new tax base. Ellendale shows what's possible: a small rural town landed a major facility and got lower electric bills in the bargain. Because AI infrastructure matters to both the economy and national security, this is something genuinely worth helping build. The opportunity is real, but so is the lesson from Williston.

📍 ndsu.edu/business

What to Know About Data Centers in North Dakota

Why do data centers need so much electricity?

Modern AI systems require computing power on a completely different scale than older cloud storage facilities. New hyperscale projects can draw between one and five gigawatts, more electricity than an entire state uses in some cases, requiring dedicated power generation rather than simply plugging into the local grid.

What went wrong with the Williston data center?

The developer placed the facility close to homes without adequate community engagement, overloaded the local electrical grid, and passed transmission costs to residents through higher bills, leading to a lawsuit and a county vote to cut the facility's power.

What did Ellendale do differently?

Applied Digital sited its facility away from neighborhoods, purchased otherwise wasted "stranded power" from local wind farms, held public town halls before construction, and engaged directly with the community, cutting local electric rates in the process.

What does North Dakota stand to gain from data centers?

Abundant energy, open land, and a cooling-friendly climate position the state well, with existing tax incentives and the potential for construction jobs, permanent operations roles, and a new tax base if projects are planned responsibly.