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North Dakota Legislative Committee Convenes to Examine Policy and Community Impacts of Data Center Expansion
Lawmakers heard concerns about transparency, energy demand and local siting authority as they consider potential legislation for the next session.
On Monday, Aug. 31, 2026, North Dakota lawmakers met in Bismarck to examine data center growth, discussing infrastructure demands, local siting authority, and environmental regulations as the industry expands.
Applied Digital executive vice president Nick Phillips testified that the company significantly boosts state revenues, with Ellendale sales tax collections jumping from about $350,000 annually to $4.5 million in the first eight months of 2026.
Sen. Tim Mathern, D-Fargo, proposed eliminating sales tax exemptions for equipment, arguing "Data centers will be built even if we eliminate this subsidy. We should do it immediately."
Public Service Commission Chair Randy Christmann proposed creating reclamation programs to dismantle data centers after use, while Casselton City Council President Sam Wagner advocated for state-level regulations and transparency.
By 2028, Applied Digital projects paying nearly $28 million annually in property taxes across North Dakota, representing approximately 6.1% of all corporate and centrally assessed property taxes collected statewide.