Applied Digital Corp. (NASDAQ: APLD) has finalized an electric service agreement with MDU Resources Group to supply power to its North Dakota-based AI factory, Polaris Forge 3.
The agreement was completed on June 23, marking a significant milestone in the company’s push to expand its artificial intelligence infrastructure footprint in the region.
Under the terms of the deal, Polaris Forge 3 will require 430 megawatts of electricity to operate at full capacity, underscoring the enormous energy demands of modern AI workloads.
Applied Digital will bear all costs associated with procuring that energy, whether through direct market purchasing or via power supply agreements negotiated separately.
Operations at the facility are projected to begin sometime in August 2027, giving the company roughly a year to complete construction and commissioning of the site.
The Polaris Forge 3 campus is designed to support high-density AI workloads, and its completion will substantially expand Applied Digital’s presence across North Dakota.
CEO and Chairman Wes Cummins highlighted the broader economic impact of the project, pointing to job creation and tax revenue as key benefits for the surrounding community.
Cummins stated: “This campus is expected to create approximately 200 full-time jobs, generate meaningful property tax revenue and support long-term growth across Oliver County and the surrounding region.”
He added: “We believe AI infrastructure should create value well beyond the campus, and we’re proud to continue building in North Dakota.”
Applied Digital is a designer and operator of digital infrastructure solutions serving the AI sector and high-performance computing market, with product offerings spanning GPU computing, crypto mining infrastructure, and data center management.
The company has been actively building purpose-built sites across North Dakota, positioning the region as a central hub for its long-term infrastructure strategy.
APLD shares were down 4.37% at the time of the agreement’s reporting, while MDU Resources Group gained 0.83%, reflecting mixed market sentiment around the deal.
The Polaris Forge 3 agreement reinforces Applied Digital’s ambition to become a major provider of reliable, large-scale AI infrastructure as demand for compute capacity continues to accelerate across the industry.
