BISMARCK, N.D., Oct. 7, 2026 /PRNewswire/ -- As traditional data center hubs face severe grid constraints, North Dakota has emerged as one of the fastest-growing development markets for artificial intelligence (AI) and high-performance computing in the Upper Midwest. According to a new market analysis released today by LandGate, a Wood Mackenzie business, North Dakota's data center development pipeline is set to more than double its current operating footprint.
The report, North Dakota Data Centers: A State-Level Market Analysis, reveals that while the state currently hosts 15 operational data centers, it has 17 facilities in the development pipeline. With a development-to-operational ratio of 1.13, North Dakota outpaces regional peers like Minnesota (0.98), Wyoming (0.93), and Iowa (0.80), as well as the national average of 0.89.
Key Insights & Market Statistics:
- Unbeatable Power Pricing: Data center sites across North Dakota feature a median locational marginal price (LMP) of approximately $35 per MWh, significantly below the national median of ~$49/MWh and neighboring markets such as Iowa, Minnesota, and Wisconsin ($47–$53/MWh).
- Massive Grid Offtake Capacity: Siting decisions are increasingly driven by substation capacity rather than proximity to population centers. LandGate models identify multiple North Dakota substations with over 1,000 MW of available offtake capacity, led by Ellendale (~1,330 MW), Hankinson (~1,260 MW), and Jamestown (~1,235 MW).
- Gigawatt-Scale AI Pipelines: Major hyperscale projects are taking advantage of this grid headroom. Key projects detailed in the report include Applied Digital's 400 MW Polaris Forge 1 campus in Ellendale, Critical Data House's 455 MW Fighting Pike campus in Williston, and Applied Digital's recently announced 430 MW Polaris Forge 3 AI campus in Oliver County.
- Co-Location Beside Baseload Generation: Developers are pioneering direct co-location strategies near the state's largest energy assets, such as Rainbow Energy's planned data center expansion at the 1,151 MW Coal Creek Station in McLean County.
- Favorable Economic Drivers: Tax incentives, including over $65 million in reported sales tax savings on qualifying data center equipment in 2025 alone, combined with a cold climate that minimizes cooling costs, continue to draw major AI infrastructure investors to the region.
"Hyperscalers and AI developers are urgently seeking markets with available power headroom, rapid interconnection paths, and favorable operating economics," said Craig Kaiser, President at LandGate. "North Dakota delivers on all fronts, establishing itself as a crucial node for the next generation of high-density computing infrastructure."
Access the Full Report
To explore complete state comparisons, and parcel-level site feasibility analyses, download the full North Dakota Data Center Market Analysis report here.
About LandGate
LandGate, a Wood Mackenzie business, is the leading energy and infrastructure intelligence platform for the U.S. grid, power market, and data center ecosystem. LandGate's proprietary data covers U.S. grid capacity mapping, nodal power pricing, interconnection queue analysis, renewable energy projects, and data center feasibility. Learn more at landgate.com.
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SOURCE LandGate
