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North Dakota Town Serves as an Example of The Promise And Perils of Data Centers For South Dakota

By Bill Dubensky Feb 2, 2026 | 5:32 AM

(Photo courtesy of Applied Digital via the North Dakota Monitor)

 

(North Dakota Monitor) – Don Flaherty worries about the future of the data center industry “every single day.”

During his four years as mayor of Ellendale, North Dakota, the town has welcomed a growing data center campus from Dallas-based Applied Digital.

If the company goes belly up, so could the town.

“Could it blow up in my face?” Flaherty said. “Absolutely.”

For now, he said, “I have faith we’re on the right track.” He expects the city of about 1,100 people to grow by 500 or 700 residents in the next few years because of Applied Digital’s campus, which includes three data center facilities expected to create up to 350 jobs in Ellendale. The total cost to build the campus is about $5 billion

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