Montana-Dakota Utilities Announces Electric Service Agreement with Applied Digital for Proposed AI Factory

Rhea-AI Summary

Montana-Dakota Utilities, a subsidiary of MDU Resources (NYSE: MDU), signed an electric service agreement with Applied Digital (NASDAQ: APLD) to supply power to the proposed Polaris Forge 3 AI Factory near Center, North Dakota.

The campus could require 430 MW at full capacity, with Applied Digital paying energy purchase costs. Applied Digital targets initial operations in August 2027 and expects about 200 full-time jobs. Montana-Dakota Utilities already serves Applied Digital’s Polaris Forge 1 site, which has enabled $38.4 million in credits to North Dakota customers over three years. The agreement requires approval from the North Dakota Public Service Commission.

Positive

• ESA covers potential 430 MW load from Polaris Forge 3 AI campus
• Applied Digital responsible for purchasing energy costs under ESA
• Polaris Forge 3 expected to add about 200 full-time jobs regionally
• $38.4 million credited to North Dakota customers over past three years at Polaris Forge 1

Negative

• Electric service agreement requires approval by North Dakota Public Service Commission before power can be provided

News Market Reaction – MDU

+1.84%

+1.84% Session close to close

In the Jun 23 session, MDU gained 1.84%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement links MDU to a proposed 430 MW AI campus under a new ESA, adding long-term load gr...

Analysis

This announcement links MDU to a proposed 430 MW AI campus under a new ESA, adding long-term load growth potential. Regulatory approval and use of its effective shelf registration remain key watchpoints for capital needs and shareholder dilution risk.

Key Figures

Power requirement: 430 megawatts Initial operations target: August 2027 Lease term: 15-year lease +4 more

7 metrics

Power requirement 430 megawatts Full capacity demand for Polaris Forge 3 AI campus

Initial operations target August 2027 Applied Digital’s anticipated start of operations at Polaris Forge 3

Lease term 15-year lease Previously announced lease with a U.S. investment-grade hyperscaler

Job creation 200 full-time jobs Estimated employment from Polaris Forge 3 AI Factory

Customer credits $38.4 million Credited back to North Dakota customers over the past three years

Utility customers 1.2 million+ customers Electric and natural gas customers served across Pacific Northwest and Midwest

Pipeline network length 3,800-mile network Length of MDU’s natural gas pipeline and storage system

Historical Context

5 past events · Latest: Jun 01 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jun 01	Transmission project update	Positive	-1.7%	Utility consortium expansion on major HVDC line and new capacity agreement.
May 13	Dividend declaration	Neutral	-0.2%	Quarterly dividend maintained with stated long-term payout ratio target.
May 07	Quarterly earnings	Positive	+0.7%	Q1 results with affirmed full-year EPS guidance and pipeline interest.
May 05	Affiliate earnings	Neutral	-0.3%	Knife River Q1 results and guidance potentially influencing legacy holder sentiment.
Apr 20	Conference call notice	Neutral	-2.0%	Scheduled Knife River Q1 2026 earnings call announcement and access details.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent MDU news, including generally constructive items, has more often coincided with modest downside than upside moves.

Key Terms

electric service agreement, ai factory, hyperscaler, colocation services

4 terms

electric service agreement regulatory

"subsidiary, Montana-Dakota Utilities Co., has entered into an electric service agreement (ESA)"

An electric service agreement is a contract that sets the terms for buying and receiving electricity, including price, length of service, delivery details and responsibilities of the supplier and customer. Think of it like a utility subscription or phone plan for power: it determines how much a buyer pays, how stable that cost is, and who handles outages or upgrades. Investors watch these agreements because they directly affect a company’s energy costs, revenue predictability and regulatory or market risk.

ai factory technical

"electric service agreement (ESA) with Applied Digital Corporation (NASDAQ: APLD) to provide power to Polaris Forge 3, an AI Factory"

An "AI factory" is an organizational setup that combines data, software, computing power and repeatable processes to build, train, deploy and monitor artificial intelligence systems at scale — like an assembly line for AI models. Investors care because a well‑run AI factory can lower costs, speed product delivery and create predictable revenue streams from many AI-powered products, making a business more competitive and scalable in a measurable way.

hyperscaler technical

"Applied Digital has previously announced a 15-year lease with a U.S. based high investment-grade hyperscaler"

A hyperscaler is a very large provider of cloud computing and data-center services that owns and operates vast amounts of servers, storage and network capacity to host other companies’ applications and data. Think of them as the electric utility for digital services: their scale cuts unit costs, enables rapid growth for customers, and creates high barriers to entry, so investors watch their market share, margins and capital spending closely.

colocation services technical

"operates high-performance, sustainably engineered data centers and colocation services for artificial intelligence"

Colocation services rent space, power and network hookups in a secure data center where a company can place its own servers close to major networks or trading venues. For investors, colocation matters because being physically closer to an exchange or cloud hub cuts the time it takes for orders and data to travel—like putting your post office next to the factory to speed deliveries—which can improve trading speed, reduce missed opportunities and support predictable infrastructure costs.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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BISMARCK, N.D., June 22, 2026 /PRNewswire/ -- MDU Resources Group, Inc.'s (NYSE: MDU) subsidiary, Montana-Dakota Utilities Co., has entered into an electric service agreement (ESA) with Applied Digital Corporation (NASDAQ: APLD) to provide power to Polaris Forge 3, an AI Factory near Center, North Dakota.

At full capacity, the campus would require 430 megawatts of electricity. Under the ESA, Applied Digital would be responsible for the costs of purchasing the energy directly from the market or through other power supply arrangements. Applied Digital anticipates initial operations to commence in August 2027.

Polaris Forge 3 will expand Applied Digital's footprint in North Dakota, where the company is developing purpose-built campuses designed to support high-density artificial intelligence workloads. Applied Digital has previously announced a 15-year lease with a U.S. based high investment-grade hyperscaler for this site.

"Polaris Forge 3 is another example of how Applied Digital is turning power into operational AI capacity through disciplined execution and long-term partnerships," said Wes Cummins, Chairman and CEO of Applied Digital. "This campus is expected to create approximately 200 full-time jobs, generate meaningful property tax revenue and support long-term growth across Oliver County and the surrounding region. We believe AI infrastructure should create value well beyond the campus, and we're proud to continue building in North Dakota."

Montana-Dakota Utilities currently serves Applied Digital at Polaris Forge 1, its AI Factory near Ellendale, North Dakota, where the companies have worked together to integrate significant power demand while maintaining reliable, cost-effective service for customers, crediting $38.4 million back to North Dakota customers over the past three years.

"This proposed project reflects the growing interest in North Dakota as a location for large energy users," said Nicole Kivisto, president and CEO of MDU Resources. "We are committed to serving these customers in a way that benefits our communities, supports the regional grid and delivers value to our customers."

Approval of the ESA and other regulatory filings by the North Dakota Public Service Commission is required for the company to provide power under the agreement with Applied Digital.

About MDU Resources Group, Inc.
MDU Resources Group, Inc., a member of the S&P SmallCap 600 index, strives to deliver safe, reliable, cost-effective and environmentally responsible electric utility and natural gas distribution services to more than 1.2 million customers across the Pacific Northwest and Midwest. In addition to its utility operations, the company's pipeline business operates a more than 3,800-mile natural gas pipeline network and storage system, ensuring reliable energy delivery across the Northern Plains. With a legacy spanning over a century, MDU Resources remains focused on energizing lives for a better tomorrow. For more information about MDU Resources, visit www.mdu.com or contact the investor relations department at investor@mduresources.com.

About Applied Digital Corporation
Applied Digital (Nasdaq: APLD) named Best Data Center in the Americas 2025 by Datacloud — designs, builds, and operates high-performance, sustainably engineered data centers and colocation services for artificial intelligence, cloud, networking, and blockchain workloads. Headquartered in Dallas, TX, and founded in 2021, the company combines hyperscale expertise, proprietary waterless cooling, and rapid deployment capabilities to deliver secure, scalable compute at industry-leading speed and efficiency, while creating economic opportunities in underserved communities through its award-winning Polaris Forge AI Factory model. Learn more at applieddigital.com or follow @APLDdigital on X and LinkedIn.

Investor Contact: Brent Miller, treasurer, 701-530-1730
Media Contacts:
		MDU Resources: Byron Pfordte, director of integrated communications, 208-377-6050
		Montana-Dakota Utilities: Jamie Tescher, senior public relations representative, 701-204-8274
		Applied Digital: JSA (Jaymie Scotto & Associates), jsa_applied@jsa.net, 856-264-7827

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/montana-dakota-utilities-announces-electric-service-agreement-with-applied-digital-for-proposed-ai-factory-302806791.html

SOURCE MDU Resources Group, Inc.

FAQ

What did MDU Resources (NYSE: MDU) announce about the Applied Digital (NASDAQ: APLD) AI Factory on June 22, 2026?

MDU Resources announced that its Montana-Dakota Utilities subsidiary entered an electric service agreement to supply power to Applied Digital’s proposed Polaris Forge 3 AI Factory. According to MDU Resources, the facility near Center, North Dakota, could require up to 430 megawatts at full capacity.

How much power will Montana-Dakota Utilities supply to Polaris Forge 3 for Applied Digital (APLD)?

Polaris Forge 3 could require 430 megawatts of electricity at full capacity. According to MDU Resources, Applied Digital will be responsible for the costs of purchasing the energy directly from the market or through other power supply arrangements under the electric service agreement.

When is Applied Digital’s Polaris Forge 3 AI Factory expected to begin operations?

Applied Digital anticipates initial operations at Polaris Forge 3 will start in August 2027. According to Applied Digital, the proposed AI Factory near Center, North Dakota, is designed to support high-density artificial intelligence workloads on a large-scale, purpose-built campus.

What regulatory approvals are needed for the MDU–Applied Digital electric service agreement for Polaris Forge 3?

The electric service agreement must be approved by the North Dakota Public Service Commission. According to MDU Resources, regulatory approval of the ESA and related filings is required before Montana-Dakota Utilities can provide power to Applied Digital under this agreement.

How does the new Polaris Forge 3 agreement relate to Montana-Dakota Utilities’ existing service for Polaris Forge 1?

Montana-Dakota Utilities already serves Applied Digital at Polaris Forge 1 near Ellendale, North Dakota. According to MDU Resources, collaboration at Polaris Forge 1 has integrated significant power demand while crediting $38.4 million back to North Dakota customers over the past three years.

What economic impact is expected from Applied Digital’s Polaris Forge 3 AI Factory in North Dakota?

Polaris Forge 3 is expected to create approximately 200 full-time jobs and generate property tax revenue. According to Applied Digital, the AI Factory aims to support long-term growth in Oliver County and surrounding areas while expanding the company’s AI infrastructure footprint in North Dakota.