Montana-Dakota Utilities Signs Power Deal With Applied Digital (NASDAQ: APLD) For 430-Megawatt North Dakota AI Factory
MDU Resources’ subsidiary Montana-Dakota Utilities signed an electric service agreement with Applied Digital to supply power for Polaris Forge 3, an AI data-center campus near Center, North Dakota. The project would need 430 MW at full capacity; Applied Digital would procure energy via market or other arrangements. Operations are expected to start Aug. 2027, subject to North Dakota PSC approval.
How this was made
The 30-second read
Why it matters
The newest actionable elements are the 430MW capacity commitment, the August 2027 initial operations target, and the requirement for North Dakota PSC approval before formal power supply.
Market read
A new, large-scale AI power contract (430MW) with a defined operational timeline and a regulatory approval gate can shift expectations for both APLD’s buildout progress and MDU’s utility demand outlook.
What to watch
Execution risk remains: grid upgrades, permitting/interconnection timelines, and whether the 430MW ramps smoothly to full capacity could affect realized demand and timing.
Background
Montana-Dakota Utilities already serves Applied Digital at Polaris Forge 1, and the article frames Polaris Forge 3 as a follow-on, long-term partnership.
Ticker impact
Applied Digital signed an electric service agreement for a 430MW North Dakota AI campus, with initial operations targeted for August 2027.
Near-term: modest positive bias on deal visibility; medium-term: valuation sensitivity to power-supply approval and execution timeline.
The article discloses a new electric service agreement and capacity figure (430MW) plus a concrete start date (Aug 2027), but it is still subject to North Dakota PSC approval and lacks financial terms.
MDU Resources’ Montana-Dakota Utilities subsidiary entered an electric service agreement to supply power for APLD’s Polaris Forge 3.
Near-term: limited upside unless investors price in incremental revenue/returns; watch for PSC approval and grid-impact disclosures.
While the capacity commitment is large, the article provides no tariff, revenue, or margin details, making it harder to translate into earnings impact for MDU.
Market effects
Reinforces the AI data-center buildout narrative in North Dakota and highlights power-supply contracting as a key execution constraint.
Signals major incremental electricity demand for Oliver County and the surrounding grid, potentially increasing focus on permitting and grid readiness.
Supports the broader trend of hyperscalers and AI infrastructure securing long-duration energy arrangements in constrained power regions.
Counterpoint
The deal’s economic impact may be muted for investors until PSC approval and commercial terms (pricing, capacity payments, interconnection specifics) are disclosed.
Key entities
- public_companyApplied Digital Corporation
Signed an electric service agreement for Polaris Forge 3, targeting initial operations in August 2027.
- public_companyMDU Resources Group, Inc.
Through Montana-Dakota Utilities, entered the power-supply agreement for the Polaris Forge 3 AI campus.
- regulatorNorth Dakota Public Service Commission
Must approve the agreement before Montana-Dakota Utilities can formally provide power.
