Applied Digital Announces Groundbreaking for $3 Billion AI Factory in North Dakota

DALLAS, Aug. 18, 2025 — Applied Digital (Nasdaq: APLD) has unveiled plans to break ground on its Polaris Forge 2, a $3 billion, 280-megawatt (MW) artificial intelligence factory near Harwood, North Dakota, this September. The facility, designed to scale beyond its initial capacity, is expected to begin operations in 2026 and reach full capacity by early 2027.

The new AI campus will strengthen Applied Digital’s rapid expansion and enhance North Dakota’s reputation as a key location for AI infrastructure. With growing demand from hyperscalers, enterprises, and research institutions for scalable, high-performance computing, Polaris Forge 2 is positioned to meet that need effectively.

Wes Cummins, CEO of Applied Digital, stated, “Polaris Forge 2 represents the next stage in our growth as a leader in high-performance AI infrastructure. The demand for AI capacity continues to accelerate, and North Dakota remains one of the most strategic locations to meet that need.”

The project builds on the company’s success with its Ellendale campus and will span over 900 acres, securing power supply through Cass County Electric Cooperative. Once operational, it is projected to create more than 200 full-time jobs and additional contractor positions.

North Dakota Governor Kelly Armstrong praised the initiative, noting, “We’re excited that Applied Digital is expanding its presence in North Dakota, contributing positively to our rural communities and enhancing our strong economy.”

Cass County Electric Cooperative President and CEO Paul Matthys expressed his enthusiasm about the partnership, emphasizing that the project would drive innovation while benefiting local communities. Similarly, Minnkota Power Cooperative’s President and CEO Mac McLennan acknowledged the significance of the state-of-the-art data center for driving technological progress in the region.

The Greater Fargo Moorhead Economic Development Corporation (GFMEDC) also voiced support, highlighting the economic benefits the project will bring to the local area. “This project is expected to contribute significantly to the greater Fargo region’s economy,” stated GFMEDC President Joe Raso.

Applied Digital aims to advance its mission of building sustainable, high-performance digital infrastructure through this new facility, underlining its commitment to creating long-lasting economic opportunities in North Dakota.

Blake Hankey, Mayor of Harwood, remarked, “This groundbreaking marks a pivotal moment that will put Harwood on the map as a leader in AI infrastructure.”