Can your North Dakota land host a data center?

Yes, if the power works, and North Dakota is further along than most people realize. Several data center campuses are already running or being built here, the state exempts data center equipment from sales tax, and the grid is being studied specifically for large new loads. What decides a particular piece of ground is the same as anywhere: how close it is to high voltage transmission with room on it, and which utility would serve it.

We do not have a separate North Dakota site. This page is our answer for North Dakota landowners.

Are data centers actually being built in North Dakota?

Yes. Applied Digital reports that the first 100 megawatt building at its Polaris Forge 1 campus in Ellendale came online in October 2025, and that the campus had 175 megawatts live by June 30, 2026. In August 2025 the company announced Polaris Forge 2 near Harwood, saying it had contracted more than 900 acres and secured power through Cass County Electric Cooperative. Harwood’s city council approved the rezoning from agricultural to light industrial at its September 10, 2025 meeting.

In June 2026 Montana-Dakota Utilities announced an electric service agreement to power Polaris Forge 3 near Center, which at full capacity would need 430 megawatts, subject to approval by the Public Service Commission.

The state’s transmission study lists existing and planned large loads around Ellendale, Jamestown, Williston, Grand Forks, Coal Creek and Harwood, and says these facilities could add another 2 gigawatts of demand to the grid by 2030.

Does North Dakota give data centers a tax break?

Yes, on equipment. Under NDCC 57-39.2-04.17, equipment and software bought for a qualified data center are exempt from sales tax, and the covered equipment includes exterior substations, backup generation and battery systems. To qualify, the buildings must total at least 15,000 square feet with at least half used for data processing, sit on a single parcel or contiguous parcels, have been built or substantially refurbished after December 31, 2020, and be certified by the Tax Commissioner.

An older version of the law limited the break to the first four data centers certified. The Legislative Council notes that limit was removed when the exemption was re-enacted in 2021.

Cities and counties can separately exempt new buildings and improvements for primary sector businesses from property tax for up to five years. The Tax Commissioner states that land does not qualify, and the application must be approved before construction starts.

Which grid is my land on, and does it matter?

It matters a lot, because North Dakota is split. The state’s Transmission Authority says North Dakota is served by two regional grid operators. The MISO footprint covers Otter Tail Power, Montana-Dakota Utilities, Great River Energy, Xcel and Missouri River Energy Services. Basin Electric and the Western Area Power Administration are members of the Southwest Power Pool, and WAPA operates the SPP transmission network in the state.

The 2025 transmission study for the state found that adding large loads in its models increased problems on the grid significantly, especially on the 115 kilovolt network in western North Dakota, and that the west was the most sensitive to new industrial load. It recommends that large load developers talk to utilities early and site projects where capacity already exists.

Utilities are writing their own rules for these customers. Basin Electric adopted a Large Load Commercial Program in June 2025 that it says insulates its existing members from the costs and risks of serving loads such as data centers. Near Harwood, the Transmission Authority reports that Minnkota plans a short 345 kilovolt line and a new substation to serve the data center there, fully funded by the developer.

If you want the fuller picture of why the utility’s answer decides a site, read what is powered land.

Can a company buy my farmland in North Dakota?

This is a North Dakota question most landowners have not had to think about. The corporate farming law, NDCC 10-06.1, generally prohibits corporations and limited liability companies from owning or leasing farmland or ranchland.

There is an exception that fits this kind of project. A corporation or LLC that is not in the business of farming may own or lease farmland when the land is necessary for commercial development or the siting of buildings, plants, facilities, industrial parks or similar business purposes. While the land is not yet being used for that purpose, it must be available for lease to people who farm or ranch. In practice, that can mean your ground keeps being farmed until construction starts.

Will I need a water permit?

A data center that draws its own water would. NDCC 61-04 requires a water permit from the Department of Water Resources before appropriating water, with exemptions for domestic and livestock use and some recreational uses. Any well that will draw more than 12.5 acre feet a year needs a permit regardless of use. The law defines industrial use to include commercial enterprises, and when a source cannot supply everyone it ranks industrial use fifth of six, below domestic, municipal, livestock and irrigation. Some campuses here, such as Applied Digital’s, describe cooling designs that use very little water, which changes the question considerably.

What happens to my farm valuation if the land changes use?

North Dakota values agricultural land on its agricultural value, based on its average annual gross return, rather than its market value. That valuation lasts until the land is put to another use, and the Tax Commissioner’s guide says land leased for commercial purposes, such as communication towers or power lines, is not assessed as agricultural land.

We looked through the property assessment chapter of the Century Code for a rollback or recapture tax when farmland is converted and did not find one. That is our reading, not a ruling, so confirm it with your county director of tax equalization before you rely on it.

What would we look for on North Dakota land?

Distance to 230 or 345 kilovolt transmission or a substation with room; which utility and which grid operator would serve it; how the land sits relative to the constrained western 115 kilovolt network; water, if the design needs it; and then acreage, terrain, flooding and road access, which are covered in what makes land qualify.

Where do we fit in North Dakota?

We buy or option land ourselves and develop it into sites that data center companies want. North Dakota is a state where that work is already happening, and land near strong transmission deserves a real look. We also turn down most land we see, usually over power, and we would rather tell you so quickly. The county, a rough acreage and anything you notice nearby is enough to begin.