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20 Aug 2025

Applied Digital’s Bid to Meet Compute Demands With New AI Factory

20 Aug 2025  by capacitymedia   
Applied Digital, a U.S.-based technology company, will begin construction on its $3 billion AI Factory, named Polaris Forge 2, in Harwood, North Dakota, in September 2025. The project aims to meet the growing demand for AI computing infrastructure and strengthen North Dakota’s position as a key hub for AI innovation in the United States.

The Polaris Forge 2 facility, designed to support 280 megawatts of power with potential for future expansion, is expected to commence operations in 2026 and reach full capacity by early 2027. The campus, spanning over 900 acres with secured power from Cass County Electric Cooperative, builds on the success of Applied Digital’s Polaris Forge 1 in Ellendale, North Dakota. “We believe Polaris Forge 2 represents the next stage in Applied Digital’s rapid growth and our position as a leader in delivering high-performance AI infrastructure,” said Wes Cummins, CEO of Applied Digital. “The demand for AI capacity continues to accelerate, and North Dakota continues to be one of the most strategic locations in the country to meet that need.”

The company is in advanced negotiations with a U.S.-based, investment-grade hyperscaler for the campus, highlighting its strategic importance. The facility will include two initial buildings with room for future growth, supporting scalable, high-performance infrastructure to meet the needs of data centers and businesses. The project is expected to create over 200 full-time jobs and additional opportunities for long-term contractors, boosting the local economy.

“North Dakota wins when companies like Applied Digital choose to be more than an employer. In Ellendale, they invested in people through workforce housing and created strong local partnerships that strengthen the community,” said Governor Kelly Armstrong. “We’re excited that they are committing to expanding their presence in North Dakota with a Harwood location, continuing the trend of being a positive corporate citizen and helping to develop our rural communities while contributing to our strong economy.”

North Dakota’s abundant energy resources, available land, and growing technical workforce make it an ideal location for AI infrastructure development. The Polaris Forge 2 project aligns with Applied Digital’s mission to build sustainable, high-performance digital infrastructure. “Applied Digital’s investment in Ellendale is a model for rural innovation—bringing high-tech infrastructure, workforce housing, and long-term economic opportunity to North Dakota,” said Commerce Commissioner Chris Schilken. “Their expansion into Harwood builds on that success and is exactly the kind of strategic partnership and investment that strengthens our communities and positions our state for the future.”

The initiative is set to deliver significant economic and community benefits, reinforcing North Dakota’s role as a leader in AI infrastructure while supporting sustainable growth and innovation.

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