Applied Digital commits billions to Ellendale's data center expansion and job creation

In a pivotal meeting on March 28, 2025, the North Dakota Senate Energy and Natural Resources Committee convened to discuss House Bill 1579, a legislative proposal aimed at studying the impact of large utility users, particularly data centers, on the state's energy grid. The atmosphere was charged with anticipation as stakeholders gathered to voice their support for the bill, which promises to shape the future of energy consumption in North Dakota.

The meeting featured testimony from various representatives, including Martin Vega, the director of community operations for Applied Digital. Vega highlighted the company's significant investment in North Dakota, nearing a billion dollars since its establishment in 2021, with plans to invest several billion more in Ellendale. He emphasized the importance of House Bill 1579, stating that it would provide crucial insights into the effects of large utility users on the energy grid. Vega noted that the bill reflects the diligent efforts of Representative Novak, who has been instrumental in addressing concerns related to energy consumption.

Vega also shed light on the job opportunities that these data centers would create, projecting around 300 to 350 full-time positions in Ellendale. He explained that these roles would offer salaries significantly higher than the current average in the area, with some positions paying two to four times more. This potential for high-paying jobs resonated with committee members, who recognized the economic benefits of such investments.

Terry Efforts, representing TechND and the Data Center Coalition of North Dakota, echoed Vega's sentiments, expressing support for the bill after collaborating with its sponsors to refine its provisions. Efforts provided context on the data center industry, noting that technicians in the field earn between $61,000 and $80,000 annually, further underscoring the economic advantages of these facilities.

The meeting also included insights from Kelvin Hollitz, chief business development officer for the Bank of North Dakota. He discussed the bank's role in facilitating investments through its MATCH program, which supports large-scale projects by providing attractive loan terms. Hollitz explained how the bank collaborates with the State Investment Board to ensure that investments contribute to economic diversification while maintaining a stable funding source.

As the discussions unfolded, it became clear that House Bill 1579 is not just a legislative formality but a strategic move to harness the potential of data centers in North Dakota. The committee's unanimous support for the bill signals a commitment to understanding and managing the implications of increased energy demand from these facilities.

With the promise of high-paying jobs and significant investments on the horizon, the meeting concluded with a sense of optimism. The future of North Dakota's energy landscape appears poised for transformation, driven by the growth of data centers and the legislative framework being established to support them. As stakeholders continue to collaborate, the state stands at the brink of a new era in energy consumption and economic development.