Grand Forks County and the city of Grand Forks are preparing policies for possible future data center proposals, though County Administrator Tom Ford said no new data center is currently planned. Ford said the county wants a development policy for data centers similar to its processes for wind turbines and solar panel farms, so officials have rules ready “for when that time comes.”

Grand Forks County Commission members saw a model ordinance in June for data center requirements, but it was presented only as a reference for future discussion and not recommended as an official county ordinance. The model covers permits, use standards and site-plan requirements such as fence locations, landscaping buffers and wastewater discharge outlets.

Grand Forks already has two data centers: a bitcoin-mining center operated by Core Scientific and a cryptocurrency mining data center operated by Sundog Mining. City Administrator Todd Feland said AI data centers could bring more capital investment than cryptocurrency facilities because they typically have higher building costs and need more employees.

Feland said Grand Forks hopes its existing power assets, bitcoin investments and possible future natural gas supply can help it become a hub for “smart AI data centers.” A hoped-for natural gas pipeline connection from western North Dakota could support future power needs, while Grand Forks officials have also spoken with Minnkota Power Cooperative, Nodak Electric Cooperative and Xcel Energy about whether the current grid can support development.

Grand Forks Air Force Base could theoretically host a data center someday because of growing “high-tech, data-driven operations,” according to Feland. Ford said he had heard “rumblings” about a possible data center on the base, which would be on federal land and outside county jurisdiction, and said such a facility could work with GrandSky business park, the base or an existing company.

Other North Dakota communities already have AI data center activity. Near Ellendale, two data centers are operating, including one smaller blockchain facility and one AI facility, and two more AI centers are under construction; all four will be operated by Applied Digital. Ellendale Mayor Don Flaherty said the centers were annexed into Ellendale in 2025 after Applied Digital first contacted Dickey County, allowing the city to benefit from property taxes.

Flaherty said the blockchain facility added approximately $800,000 in taxable value for the county, school and fire district, while the completed AI facility added approximately $5 million. The unfinished AI facilities are adding about $7 million now, with projections of between $16 million and $18 million next year and another $7 million after that. Ellendale’s taxable property valuation rose in 2026 from about $3.5 million to approximately $16 million, and Flaherty said the tax base will have grown by more than 10 times when the work is done.

The Ellendale projects have also brought pressure on local infrastructure and housing. Flaherty said the blockchain facility employs 35 full-time, unskilled employees, and each AI facility is expected to employ 100 full-time employees, with about 60% of positions unskilled and fillable by area residents. Around 1,500 construction workers were on site each day in 2025, and between 2,500 and 2,600 each day this year, compared with Ellendale’s 2020 U.S. Census population of 1,125.

Applied Digital is also building a $3 billion data center near Harwood, expected to operate by early 2027, and residents raised concerns at an Aug. 28 public forum on hyperscale AI data centers. Statewide concerns include environmental impacts, power use, noise pollution and effects on local taxpayers. During a Sept. 2-4 special legislative session in Bismarck, an NDA bill failed in the Senate 32-15, and a proposed moratorium on data center development did not advance.

Feland and Ford said early planning in Grand Forks is partly meant to address residents’ concerns before any proposal arrives. Feland said work with energy providers is aimed at preventing utility customers from paying higher rates because of possible data centers, while Ford said a data center could increase the county’s property-tax base if concerns are heard and mitigated first.

Grand Forks County and the city of Grand Forks are preparing policies for possible future data center proposals, though County Administrator Tom Ford said no new data center is currently planned. Ford said the county wants a development policy for data centers similar to its processes for wind turbines and solar panel farms, so officials have rules ready “for when that time comes.”

Grand Forks County Commission members saw a model ordinance in June for data center requirements, but it was presented only as a reference for future discussion and not recommended as an official county ordinance. The model covers permits, use standards and site-plan requirements such as fence locations, landscaping buffers and wastewater discharge outlets.

Grand Forks already has two data centers: a bitcoin-mining center operated by Core Scientific and a cryptocurrency mining data center operated by Sundog Mining. City Administrator Todd Feland said AI data centers could bring more capital investment than cryptocurrency facilities because they typically have higher building costs and need more employees.

Feland said Grand Forks hopes its existing power assets, bitcoin investments and possible future natural gas supply can help it become a hub for “smart AI data centers.” A hoped-for natural gas pipeline connection from western North Dakota could support future power needs, while Grand Forks officials have also spoken with Minnkota Power Cooperative, Nodak Electric Cooperative and Xcel Energy about whether the current grid can support development.

Grand Forks Air Force Base could theoretically host a data center someday because of growing “high-tech, data-driven operations,” according to Feland. Ford said he had heard “rumblings” about a possible data center on the base, which would be on federal land and outside county jurisdiction, and said such a facility could work with GrandSky business park, the base or an existing company.

Other North Dakota communities already have AI data center activity. Near Ellendale, two data centers are operating, including one smaller blockchain facility and one AI facility, and two more AI centers are under construction; all four will be operated by Applied Digital. Ellendale Mayor Don Flaherty said the centers were annexed into Ellendale in 2025 after Applied Digital first contacted Dickey County, allowing the city to benefit from property taxes.

Flaherty said the blockchain facility added approximately $800,000 in taxable value for the county, school and fire district, while the completed AI facility added approximately $5 million. The unfinished AI facilities are adding about $7 million now, with projections of between $16 million and $18 million next year and another $7 million after that. Ellendale’s taxable property valuation rose in 2026 from about $3.5 million to approximately $16 million, and Flaherty said the tax base will have grown by more than 10 times when the work is done.

The Ellendale projects have also brought pressure on local infrastructure and housing. Flaherty said the blockchain facility employs 35 full-time, unskilled employees, and each AI facility is expected to employ 100 full-time employees, with about 60% of positions unskilled and fillable by area residents. Around 1,500 construction workers were on site each day in 2025, and between 2,500 and 2,600 each day this year, compared with Ellendale’s 2020 U.S. Census population of 1,125.

Applied Digital is also building a $3 billion data center near Harwood, expected to operate by early 2027, and residents raised concerns at an Aug. 28 public forum on hyperscale AI data centers. Statewide concerns include environmental impacts, power use, noise pollution and effects on local taxpayers. During a Sept. 2-4 special legislative session in Bismarck, an NDA bill failed in the Senate 32-15, and a proposed moratorium on data center development did not advance.

Feland and Ford said early planning in Grand Forks is partly meant to address residents’ concerns before any proposal arrives. Feland said work with energy providers is aimed at preventing utility customers from paying higher rates because of possible data centers, while Ford said a data center could increase the county’s property-tax base if concerns are heard and mitigated first.