Applied Digital Corporation is actively developing its Polaris Forge 2 AI data center campus near Harwood, North Dakota. The project commenced site work following a September 2025 groundbreaking, marking a significant infrastructure initiative to support the demands of the artificial intelligence sector. Designed in stages, the initial phase represents a planned $3 billion investment and targets a substantial capacity of 280-MW. The campus is strategically located on over 900 acres and is intended to eventually expand to a full 1-gigawatt (GW) capacity to house large-scale AI compute deployments and associated infrastructure.
The facility is progressing towards an operational timeline that anticipates initial service delivery in 2026, with the first phase reaching full capacity by early 2027. A key aspect of the project’s development includes a secured long-term lease agreement for 200 MW of capacity with a U.S.-based investment-grade hyperscaler, highlighting strong commercial interest in the site’s offerings. This project underscores Applied Digital’s commitment to building necessary capacity for the growing AI market, leveraging efficient designs and regional power resources.
This investment is the second phase of our expansion, Applied Digital CEO Wes Cummins said. “We are seeing huge demand for AI capacity, and North Dakota has proven to be one of the most strategic locations to meet that demand. With strong interest from hyperscale customers, it’s the time to move forward with groundbreaking.”
A $3 Billion Investment in AI Infrastructure
Polaris Forge 2 is an addition to Applied Digital’s original North Dakota campus in Ellendale, further making the state a hub for digital infrastructure. The new location in Harwood will have two initial buildings. And be home to more than 200 full-time employees when running, along with long-term contract workers.
At the time, Governor Kelly Armstrong welcomed the announcement, highlighting Applied Digital’s track record of investing in local communities. “We’re excited they are expanding in Harwood, continuing to strengthen rural communities while contributing to our economy,” Armstrong said.
In a recent development, Applied Digital announced it expects to receive an additional $787.5 million in funding through its existing $5 billion perpetual preferred equity financing facility with Macquarie Asset Management, with $450 million specifically allocated to accelerate the build-out of the Polaris Forge 2 campus.
Also, Applied Digital in October received an initial $112.5 million in funding from Macquarie Asset Management (MAM) to support the build-out of its 400MW AI Factory campus in Ellendale, North Dakota (“Polaris Forge 1”), which is designed to scale up to 1 gigawatt over time, the company announced in a press release on October 7.
Powering the Future of AI
The project is being funded by Cass County Electric Cooperative and Minnkota Power Cooperative. Which are under agreements to provide stable and scalable energy to the site. Community leaders emphasized the importance of ensuring that the project aligns with values in the community while promoting technological innovation.
“This development is a significant opportunity for our region,” said Mac McLennan, CEO of Minnkota Power Cooperative. “We want to make sure it strengthens our communities and builds on the reliable power foundation we’ve provided for decades.”
Polaris Forge 1 isn’t a traditional data center — it’s an AI-optimized supercomputing campus designed to deliver massive, power-dense capacity for the next generation of artificial intelligence systems, similar to Richland Parish AI Campus by meta.
Driving Economic Growth in Fargo-Moorhead
The project was also backed by the Greater Fargo Moorhead Economic Development Corporation, citing workforce studies that confirm the region’s ability to supply Applied Digital with the skills it needs. “The economic impact of this project will be substantial for our market,” stated Joe Raso, GFMEDC President & CEO.
Establishing North Dakota’s AI Leadership
With Polaris Forge 2, Applied Digital is positioning North Dakota at the forefront of the next-generation AI infrastructure race. Helping the state catch up with the nation’s leading regions known for large scale AI data centers, such as Northern Virginia, Dallas–Fort Worth, and Arizona. Leaders in the area hailed the groundbreaking as a historic moment.
“This project will also put Harwood on the map as the center for AI infrastructure,” said Mayor Blake Hankey. “It demonstrates faith in our citizens and our potential.”.
Polaris Forge 2 — Project Factsheet
Developer: Applied Digital Corporation
Location: Near Harwood, Cass County, North Dakota
Project Type: AI Factory / High-performance data center campus
Estimated Cost: $3 billion
Capacity: 280 MW, scalable beyond initial design
Site Area: Over 900 acres
Facilities: Two initial buildings with future expansion potential
Power Partners: Cass County Electric Cooperative; Minnkota Power Cooperative
Employment: 200+ full-time positions expected
Timeline:
Groundbreaking: September 2025
Initial Capacity: 2026
Full Capacity: Early 2027
