Rendering of Polaris Forge 2, Applied Digital’s planned $3B, 280MW AI Factory in Harwood, North Dakota, scheduled to begin operations in 2026. Image Source: Global Newswire via Applied Digital
Applied Digital Breaks Ground on $3B Polaris Forge 2 AI Data Center in North Dakota
Key Takeaways:
Applied Digital will break ground in September 2025 on Polaris Forge 2, a $3B, 280MW AI Factory in Harwood, ND, with initial operations in 2026 and full capacity by early 2027.
The campus spans 900+ acres, secured power through Cass County Electric Cooperative, and will employ more than 200 full-time staff.
The project builds on Polaris Forge 1 in Ellendale, where Applied Digital began development in early 2024; CEO Wes Cummins discussed the build in a March 2024 interview.
A landmark 250MW lease with CoreWeave, valued at billions over 15 years, underscores hyperscaler demand for Applied Digital’s infrastructure.
Applied Digital projects $2.7B in long-term cost savings from smart site selection and efficient designs, leveraging natural cooling and renewable power.
The company emphasizes sustainability through waterless cooling, renewable energy sourcing, and community investment in rural North Dakota.
Applied Digital Launches Polaris Forge 2
Applied Digital (Nasdaq: APLD) announced it will break ground in September 2025 on Polaris Forge 2, a $3 billion AI Factory near Harwood, North Dakota. Designed for 280 megawatts (MW) with capacity to scale beyond, the new data center campus is scheduled to begin initial operations in 2026 and reach full capacity in early 2027.
“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.”
Applied Digital has already secured more than 900 acres for the site and power agreements through Cass County Electric Cooperative, with long-term support from Minnkota Power Cooperative. Once fully operational, the project is expected to employ over 200 full-time staff, alongside long-term contractors.
Local leaders emphasized the broader economic and community impact. Governor Kelly Armstrong said, “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.”
Building on Ellendale’s Polaris Forge 1
The Harwood campus follows Applied Digital’s earlier development of Polaris Forge 1 in Ellendale, ND. That facility began construction in early 2024, with energy delivery milestones announced in December 2024.
In a March 2024 interview with AiNews.com, CEO Wes Cummins described Ellendale as an early model of Applied Digital’s approach to AI Factory design, focusing on performance, sustainability, and community integration.
Commerce Commissioner Chris Schilken later called the Ellendale build “a model for rural innovation—bringing high-tech infrastructure, workforce housing, and long-term economic opportunity to North Dakota.”
CoreWeave Partnership Validates Demand
In June 2025, Applied Digital announced a 250MW, 15-year lease agreement with CoreWeave at its Ellendale campus—one of the largest hyperscaler data center deals to date. The agreement is valued at roughly $7 billion in contracted revenue over the life of the lease.
The lease agreements also give CoreWeave the option to access an additional 150MW of critical IT load at Ellendale, positioning the campus as a scalable hub for expanding AI and HPC workloads. The Ellendale site was engineered for high-density compute and designed with the ability to scale up to 1 gigawatt over time. Applied Digital noted that Ellendale currently has over 1 gigawatt of power capacity under various stages of load study, enabling future expansion.
As part of the phased rollout, the first 100MW building for CoreWeave is scheduled to come online in late 2025, followed by a second 150MW building in mid-2026. Additionally, CoreWeave holds an option for a third 150MW building, which is in the planning stages and anticipated to be ready for service in 2027, further deepening its long-term footprint at Ellendale.
“These leases solidify Applied Digital’s position as an emerging provider of infrastructure critical to the next generation of artificial intelligence and high-performance computing. We view CoreWeave as an ideal partner as we accelerate our growth and innovation,” said Wes Cummins, CEO of Applied Digital.
$2.7 Billion in Data Center Savings
Applied Digital released a new white paper in June 2025 titled AI Factory: A Case Study for Total Cost of Ownership, outlining how strategic site selection and infrastructure design can cut billions in long-term generative AI operating costs. The company projects up to $2.7 billion in savings over a 30-year lifespan for large-scale campuses, primarily through efficient cooling and energy use.
The report emphasizes that AI factories require 15–30 times the power density of traditional data centers, demanding new approaches to electricity and cooling. Applied Digital highlights North Dakota as a prime location, offering more than 220 days of free cooling annually, which sharply reduces power consumption and improves sustainability.
Key findings and initiatives include:
Electricity savings: Up to $50–60 million per year per 100 MW campus.
Cooling technologies: Reliance on liquid cooling and free cooling to achieve a significantly lower Power Usage Effectiveness (PUE) of 1.18 and near-zero Water Usage Effectiveness (WUE).
Polaris Forge campuses: Applied Digital has rebranded its North Dakota data center developments under the name Polaris Forge, which will consist of four campuses purpose-built for AI workloads.
Polaris Forge 01 (Ellendale campus): The first of these sites, designed as an “AI Factory,” features a closed-loop, waterless, direct-to-chip cooling system and access to gigawatt-scale stranded power. Built to support 400 MW of critical IT load with more than 1 GW in study capacity, the facility demonstrates how AI-specific infrastructure can deliver long-term efficiency gains.
Stranded power: Access to gigawatt-scale stranded energy in North Dakota supports cost stability.
Applied Digital says the Polaris Forge campuses are not only designed for technical optimization but also tied to community and economic initiatives, including workforce housing and job creation, to ensure sustainable regional growth.
“With Polaris Forge, we’re building something that’s efficient, scalable and community-focused,” added Cummins. “We believe AI infrastructure can thrive in places like North Dakota—not in spite of their location, but because of it.”
Sustainability at the Core
Applied Digital highlights sustainability as a central part of its “Different by Design” approach. Key initiatives include:
Waterless cooling technologies and direct liquid cooling to minimize energy and water use.
Building data centers adjacent to renewable energy sources, such as wind power, to reduce carbon footprints.
Repurposing curtailed energy from the grid to support efficient operations.
Investing in community infrastructure, including workforce housing and partnerships with local organizations in rural North Dakota.
These efforts not only improve long-term efficiency but also ensure that AI infrastructure delivers lasting benefits to local communities.
Q&A: Applied Digital’s Polaris Forge 2
Q: What is Polaris Forge 2?
A: Polaris Forge 2 is a new $3 billion, 280MW AI data center campus in Harwood, ND, designed by Applied Digital to meet rising demand for compute infrastructure.
Q: When will Polaris Forge 2 be operational?
A: Initial operations are scheduled for 2026, with full capacity expected by early 2027.
Q: How does Polaris Forge 2 build on Ellendale’s success?
A: The Harwood project follows Polaris Forge 1 in Ellendale, where Applied Digital established its AI Factory model with sustainable design and strong community partnerships.
Q: Why is the CoreWeave partnership significant?
A: The 250MW lease with CoreWeave—with options to expand to 400MW—validates Applied Digital as a critical provider of infrastructure for hyperscalers and ensures billions in long-term revenue.
Q: How does Applied Digital achieve $2.7B in cost savings?
A: By leveraging North Dakota’s natural cooling, renewable energy, and optimized site design, a 100MW facility can save $2.7 billion over 30 years compared to less efficient builds.
Q: How does Applied Digital emphasize sustainability and efficiency?
A: Through strategic site selection, waterless cooling, renewable power sourcing, grid-friendly energy use, and energy-efficient designs, while investing in local community infrastructure to ensure long-term impact.
Looking Ahead
With the groundbreaking of Polaris Forge 2, Applied Digital is deepening its bet on North Dakota’s emergence as a national leader in AI infrastructure. The company’s expansion from Ellendale to Harwood, combined with hyperscaler partnerships, sustainable design, and rural community investment, positions it as one of the most important players in the next era of AI compute—where scale and sustainability advance together.
As demand for AI capacity accelerates, Polaris Forge 2 signals that the frontier of digital infrastructure is being built in the rural Midwest—and that sustainability and scale can go hand in hand.
Editor’s Note: This article was created by Alicia Shapiro, CMO of AiNews.com, with writing, image, and idea-generation support from ChatGPT, an AI assistant. However, the final perspective and editorial choices are solely Alicia Shapiro’s. Special thanks to ChatGPT for assistance with research and editorial support in crafting this article.