Controversial data center moves forward in eastern North Dakota
A technician wearing PPE working on racks of equipment in a data center in Stutsman County, North Dakota. halbergman via Getty Images
Local leaders in North Dakota pushed forward with a planned data center development this week after contentious public hearings.
This story was originally published by the North Dakota Monitor.
HARWOOD, N.D. — Harwood city leaders pushed forward with a planned data center development Tuesday after contentious public hearings.
The Harwood Planning and Zoning Board and City Council voted in favor of the $3 billion Applied Digital data center that seeks to meet the growing demand for artificial intelligence computing.
The Planning and Zoning Board recommended rezoning a 320-acre area southeast of Harwood from agriculture to light industrial. The City Council then approved a first reading of the zoning change and a building permit for MBN Engineering of Fargo that will work on the project. A second vote by the council is required to finalize the zoning change and the building permit. The votes would likely come at the October meeting.
Harwood Mayor Blake Hankey said the zoning change and data center would help insulate Harwood from development from the north side of Fargo.
“I’m hoping that’s going to stop Fargo from coming into our backyard,” Hankey said.
Hankey said Fargo is attempting to annex the site that is between Harwood and Fargo, which he believes is illegal. But, if the site were to become part of Fargo, Harwood residents would have to deal with the potential negatives, such as noise and traffic, without the tax benefits, Hankey said.
The Harwood City Council also formally voted to oppose Fargo’s annexation. Fargo city leaders voted unanimously last month to approve resolutions to annex land north of the city that includes the data center site, The Forum of Fargo-Moorhead reported. The annexation would need approval from Harwood leaders.
Harwood resident Darlene Meyer said she had come around the idea of the data center being built nearby, in part because of Fargo’s intentions.
She called the Harwood government’s actions “the biggest decision in the history of Harwood.”
After the unanimous vote from the Planning and Zoning Committee, several people in the crowd called out “shame.”
Texas-based Applied Digital last month announced the project that the company says would add 200 to 300 jobs and tax revenue for the town of about 900 people.
Harwood resident Deb Moug said her research led to some of the negatives of data centers, such as high power consumption and impact on the quality of life. She cautioned leaders to take more time on making decisions.
“I think people are too anxious to jump on the AI bandwagon without really thinking this through,” she said.
Some members of the public called for an environmental impact study.
If built, the Harwood center would be Applied Digital’s third project in North Dakota, with its largest data center at Ellendale, a town of about 1,100.
The Harwood project received a cool reception at a community meeting organized by Applied Digital on Aug. 25.
Tuesday’s City Council portion of the meeting started with Hankey cutting short comments from a Harwood resident who wanted to criticize how Applied Digital approached the city. Hankey tried to limit the comments to specific to the zoning change and not the Applied Digital business model.
As residents shouted at the mayor, he asked to have one person removed. Some others left voluntarily.
Later in the public hearing, however, Hankey and others made comments about Applied Digital.
After the hearing and before the vote, Applied Digital CEO Wes Cummins and Executive Vice President Nick Phillips took several questions about topics such as traffic flow and utility rates.
They said they would work with local officials to minimize truck traffic through Harwood. Cummins said there would not be noticeable surges in traffic when workers start and end shifts.
“It’s a significant number of jobs, but not an overwhelming number of jobs,” he said.
Phillips also said a recent off-peak rate increase by Cass County Rural Electric Cooperative, which will provide power to the center, is not related to the project.
They reiterated how North Dakota’s cool climate allows for more energy-efficient data centers than warmer states.
In announcing the project, Applied Digital said it hoped to break ground yet this month, but Cummins said the company would have to wait for final approval from the city.
“It’s as soon as we can make it happen,” Cummins said. “We love the weather here for what we do, but it does create some problems for construction.”
North Dakota Monitor Deputy Editor Jeff Beach can be reached at jbeach@northdakotamonitor.com.
North Dakota Monitor is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. North Dakota Monitor maintains editorial independence. Contact Editor Amy Dalrymple for questions: info@northdakotamonitor.com.