Montana-Dakota Utilities Co., a subsidiary of MDU Resources Group, signed an electric service agreement with Applied Digital to supply Polaris Forge 3, a projected AI factory near Center, North Dakota.
According to the company, the campus would require 430 megawatts of electricity at full capacity. Under the agreement, Applied Digital would assume energy procurement costs through direct market purchases or other power supply schemes.
Polaris Forge 3 Aims to Begin Operations in 2027
Additionally, Applied Digital anticipates beginning initial operations in August 2027. The project would expand its presence in North Dakota, where it develops campuses designed for high-density artificial intelligence workloads.
The company had already announced a 15-year lease contract with a U.S. cloud services provider with high credit rating for this same site.
Power Agreement for AI Strengthens Applied’s Infrastructure
Furthermore, Polaris Forge 3 strengthens the relationship between electrical infrastructure and advanced computing. AI factories require stable, scalable, and competitive energy capacity to support model training, intensive processing, and cloud services.
Wes Cummins, president and chief executive officer of Applied Digital, noted that the campus could generate approximately 200 full-time jobs, property tax revenues, and economic growth in Oliver County.
MDU Already Supplies Another Applied Digital Campus
Likewise, Montana-Dakota Utilities already provides service to Applied Digital at Polaris Forge 1, an AI factory located near Ellendale, North Dakota. According to the companies, that collaboration enabled the integration of significant electrical demand while maintaining reliable service for customers.
MDU Resources indicated that the project reflects growing interest in North Dakota as a location for large energy consumers, especially in sectors linked to data centers, artificial intelligence, and digital infrastructure.
The Agreement Still Requires Regulatory Approval
Finally, supply under the agreement will depend on approval from the North Dakota Public Service Commission. Regulatory authorization will be necessary for Montana-Dakota Utilities to proceed with the electric service agreed upon with Applied Digital.
Source: Applied Digital
Photo: Shutterstock
