Polaris Forge 2: How a $3 Billion ‘AI Factory’ Is Redefining North Dakota—and AI Infrastructure
When you think “AI Factory,” your mind probably jumps to Silicon Valley or a futuristic lab full of glowing servers. But in September 2025, a small town in North Dakota named Harwood will break that stereotype—thanks to Applied Digital’s ambitious Polaris Forge 2.
1. A Quiet Town, About to Get a Lot Noisier
Harwood isn’t known for tech megaprojects—it’s a community of under 800. But Applied Digital is changing that, planning a $3 billion, 280MW AI Factory on 900+ acres east of Fargo. Construction begins in September, operations start in 2026, and full capacity is expected by early 2027.
This initiative positions Harwood—and North Dakota—as a national anchor for high-performance AI infrastructure. Why? Because the state offers one thing many tech hubs lack: real capacity.
2. Why North Dakota?
It’s more than abundant land. North Dakota offers stranded energy, favorable regulations, and a stable power grid, allowing Applied Digital to slash annual operational costs by $50–60 million compared to traditional data center markets. Plus, it benefits from efficient cooling strategies—its climate gives you 220+ days of free, high-efficiency cooling each year.
3. Building on Success: From Ellendale to Harwood
Applied Digital isn’t new to this. Their Polaris Forge 1 campus in Ellendale already supports 530MW and employs hundreds of people. Locals report that this infrastructure brought workforce housing, new businesses, and economic vitality to the area.
Polaris Forge 2 is the next phase—a strategic escalation, not a gamble. With strong investor interest and negotiations with service providers on the table, the company isn't just building infrastructure, it's laying the groundwork for a regional transformation.
4. Power Moves: Deals, Stock Jumps, and Big Bets
Investors are watching. Applied Digital’s stock popped 17% intraday after the announcement—an emphatic nod to market confidence.
Earlier in 2025, Macquarie announced up to $5 billion in funding for Applied Digital’s AI data center projects, helping pay off early debts and fuel growth. And let’s not forget the $7 billion CoreWeave leasing deal—linking Applied’s infrastructure directly to Top-Tier AI clients.
5. More Than Megawatts: What This Means for North Dakota
This isn't just tech investment—it's rural revitalization in action. Local officials see Polaris Forge not only as a job creator but an act of corporate citizenship. This includes workforce housing, community partnerships, and skill-building that resonate long-term.
6. Broader Implications: What Polaris Forge 2 Signals for the Future
Decentralized AI Hubs Are Rising: We're no longer limited to traditional tech corridors. Regions with capacity and leverage will claim the future.
Infrastructure Is Strategic Differentiation: Sustainable, efficient, scalable deployments are AI's biggest operational advantage.
Investor Appetite Remains Strong: Backed by the right partners, even infrastructure in the middle-of-nowhere draws attention—and capital.
Public-Private Partnerships Matter: Community alignment (like North Dakota's model) isn't just feel-good—it’s foundational to execution.
Polaris Forge 2 is not just a data center—it’s a statement. It's where ambition meets geography, efficiency meets scale, and rural North Dakota steps into the future of AI infrastructure.
The quiet town of Harwood will never be the same. And that’s the point.
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