Applied Digital is changing the region with massive data center investments that are reshaping the state’s economy and energy landscape. From blockchain mining to high-performance computing (HPC) for artificial intelligence (AI), the company’s footprint is expanding at a rapid pace.
We sat down with Executive Vice President of External Affairs Nick Phillips who shared insights into the company’s journey to North Dakota, the economic impact of their projects, and their ambitious plans for the future.
Applied Digital officially began operations in March 2021, with serious site selection beginning that June. After exploring multiple locations, the company landed on Jamestown as its first North Dakota data center site. Construction began in September 2021, and by January 2022, the facility was up and running, reaching full operation in June of the same year.
Ellendale followed as the next major project, beginning construction in September 2022. Unlike Jamestown’s 100-megawatt capacity, Ellendale is a significantly larger operation. Parts of the facility were live by March 2023, and by July of that year, it was fully operational. But that was just the beginning.
“Right now, we have approval for up to 530 megawatts at Ellendale,” Phillips said. “For context, the entire metro area of Bismarck uses about 100 megawatts. So, our Ellendale facility is already nearly twice that size. And by the time we’re done, we could account for about 10% of North Dakota’s total power generation.”
The economic impact of this is substantial. Applied Digital’s growing workforce includes about 400 employees, with 2,500 permanent indirect jobs statewide supporting operations and as many as 14,000 during construction. The company is also on track to become one of North Dakota’s top 10 property taxpayers by 2026 or 2027.
The Next Phase Of Growth
Ellendale’s expansion is nothing short of massive. The current facility—180 megawatts—spans 10 buildings with 110,000 square feet of operational space. But under construction now are three additional buildings that will push the scale far beyond its current size.
“The first new building alone is 380,000 square feet, a three-story structure with about 94,000 square feet dedicated to the data hall,” Phillips said. “The next two buildings are estimated to each be 900,000 square feet. Altogether, when complete, the Ellendale campus will have roughly 2.2 million square feet.”
The investment is staggering: $5 billion from Applied Digital for construction, and an estimated $15 billion from customers to fill the facility with computing equipment. By comparison, Jamestown’s original eight buildings and office and warehouse cost around $42 million, and the initial 10 buildings at Ellendale were an $82 million investment. The scale-up is exponential.
A Shift To AI
Originally, Applied Digital’s North Dakota facilities were built for blockchain mining. But the new Ellendale expansion is designed entirely for HPC applications.
“The HPC applications we’re supporting include generative AI, natural language processing, and machine learning,” broader community.” With more than $20 billion in combined investment from Applied Digital and its customers, the Ellendale expansion is the largest singlesite investment in North Dakota history. And according to Phillips, it’s only the beginning.
“We’ve built a lot in just four years,” he said. “And the reason we’re continuing to bet big on North Dakota is simple—the workforce here is incredible. People show up, no matter the weather. That’s a huge reason why we’re continuing to grow in this state.”
As AI and high-performance computing continue to shape the future, North Dakota is positioning itself as a key player in the next generation of digital infrastructure. And with Applied Digital leading the charge, the state’s impact on the global tech landscape is only set to expand further.
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