Data centers in North Dakota

📜 State laws

SB 2406 (2026 special session): ban on secret deals (NDAs) with data centers failed · Sept 3, 2026
Sen. Tim Mathern (D-Fargo) brought a bill to stop public officials and agencies from signing secret deals (NDAs) with developers of data centers and other industrial projects. A company that signed such a deal could have lost its permit or zoning change. Governor Kelly Armstrong testified against it, saying North Dakota's open records law already stops officials from hiding public records. A joint House-Senate committee recommended a 'do not pass', and on September 3, 2026 the Senate voted it down 32-15. Supporters say they will bring it back in the 2027 session. Source

HB 1579 (2025): state study of big power users like data centers · April 29, 2025
Lawmakers ordered a study of how big power users, including data centers, affect North Dakota's power grid, power bills and the economy. The study looks at who pays for grid upgrades, whether the rules differ between investor-owned utilities, rural co-ops and city utilities, and whether backup generators at data centers make sense. The Governor signed it on April 29, 2025. The study runs during 2025-2026 and can lead to bills in 2027. Source

SB 2038 (2025): data center tax break claims become public · March 24, 2025
Before this law, the names and addresses of companies using the data center sales tax break were kept secret. SB 2038 lets the Tax Commissioner make public the itemized tax break claims of data center owners, for claims made in 2025 or later. Tenants who rent space in a data center are not covered. The Governor signed it on March 24, 2025. Source

Interim Artificial Intelligence and Data Center Committee (2026) · June 25, 2026
Legislative leaders set up a 12-member committee in June 2026 to study data centers and AI before the 2027 session. It looks at water and power use, where data centers are built, how other states handle them, and local government impacts. Rep. Jonathan Warrey (R-Casselton) chairs it. It has met several times, including on August 31, 2026, and is expected to write a report and any bill drafts by November. Meetings are open to the public and have had public comment time. A separate tax committee is also reviewing the data center tax break. Source

2027 session: data center bills expected · Jan 2027
North Dakota's Legislature meets in odd years. The next regular session starts in January 2027. Ideas raised in 2026 include a new ban on secret deals (NDAs), ending the sales tax break on data center equipment (Sen. Mathern), and community benefit agreements with local communities (Sen. Brad Bekkedahl). Sen. Mathern also proposed a temporary statewide moratorium; leaders said it was unlikely to pass. Source

HB 1239 (2025): limits on local zoning of crypto mines failed · Feb 17, 2025
This bill would have limited how counties, cities and townships could zone digital asset (crypto) mining. It failed in the House 14-75 on February 17, 2025. Local governments kept their zoning power over crypto mines and data centers. Source

💡 Who pays for the power

Who sets power rates: the PSC for investor-owned utilities only · Oct 8, 2026
The North Dakota Public Service Commission (PSC) approves rates of investor-owned utilities, such as Montana-Dakota Utilities (MDU) and Otter Tail Power. It does not regulate rural electric co-ops; their own boards set their rates. The PSC has no power over data centers themselves, only over the regulated utilities that serve them. Its three commissioners are elected statewide; two seats are on the November 2026 ballot. Source

Otter Tail Power: proposed special rate for data centers (PU-26-215) · June 18, 2026
On June 18, 2026 Otter Tail Power asked the PSC to split its big-customer class by size and add a new 'High Power Compute' rate for data centers with at least 75 megawatts of firm load. It is a take-or-pay deal: the data center would pay all costs of serving it, kept apart from other customers, with a contract of at least 15 years. Customers over 25 megawatts would be a new 'very large customer' tier. Otter Tail wants it to start January 1, 2027. The PSC suspended the rates for review on July 27, 2026, held an informal hearing September 23, 2026, and let Geronimo Power join the case. Source

MDU Rate 45: data centers buy power at market price · Aug 27, 2025
Montana-Dakota Utilities serves data centers (like Applied Digital in Ellendale) under 'Rate 45 - High Density Contracted Demand Response'. It is for at least 10 megawatts of new data center load running at least 85% of the time, and each contract must be approved by the PSC. MDU buys the power for these data centers on the regional MISO market and says it builds no new power plants for them. Part of the money is shared back to other customers as bill credits; MDU estimated more than $34 million a year, about $250 per home, once 530 megawatts are online by the end of 2027. Source

MDU asks for a 14.5% electric rate increase (PU-26-241) · June 30, 2026
On June 30, 2026 MDU asked the PSC for $34.5 million more per year, a 14.5% increase overall. The average home would pay about $19.10 more per month, and home rates would rise more (18.9%) than big business rates (11.1%). By state law the PSC had to allow a temporary increase: from early September 2026, a typical home pays about $12.90 more per month (12.3%) until the case is decided. Hearings are likely in 2027. MDU says the request is not tied to data centers. AARP North Dakota has joined the case for consumers. Source

💵 Tax breaks

Sales tax break on data center equipment · 2021
Data centers do not pay North Dakota sales tax (5%) on computer equipment and software, cooling systems, power equipment, substations, backup generators and batteries. To qualify, a newly built or rebuilt data center must be at least 15,000 square feet, use at least half of it for data processing, and be certified by the Tax Commissioner. Owners, operators and tenants can all use it. Building construction is not covered. The break started in 2015; the current version is from 2021. Reported savings grew from $5.4 million in 2021 to $15.3 million in 2024 and more than $65 million in 2025 (not counting tenants). The Tax Commissioner reported 332 permanent jobs created or kept from 2021 to 2025. Lawmakers are reviewing it before 2027. Source

Data centers pay property tax · Oct 8, 2026
The state sales tax break does not cover property tax, so data centers pay local property taxes. Any local property tax deal (for example a payment in lieu of taxes or a new-business exemption) is made by the city or county; we have not found a statewide list of such deals for data centers. Source

🤐 Secret deals and public records

North Dakota open records law: anyone can ask · Oct 8, 2026
All records of a public body (state agency, county, city, township, school board) are public unless a law says otherwise. Anyone can ask; you do not have to say who you are or why. The first request can be by phone, email or in person. Paper copies can cost up to 25 cents a page. Electronic copies are free, unless they take more than an hour of computer work. Search time is free for the first hour, then up to $25 an hour. There is no fixed deadline, but an 'unreasonable delay' breaks the law. A denial must say which law allows it, and must be in writing if you ask. Source

If a records request is denied: ask the Attorney General · Oct 8, 2026
Anyone can ask the Attorney General for an opinion if a public body denies records, delays too long, charges too much or holds a meeting without proper notice. You must ask within 30 days (90 days for a meeting held without notice). If the Attorney General finds a violation, the body has 7 days to fix it. You can also sue in court. Source

Early data center plans can be kept secret until the company goes public · Oct 8, 2026
Records about a business's possible new location, including who it is and where it wants to build, can be kept secret until the company itself makes its plans public. This does not cover records for permits needed to build or run the business. Trade secrets and some business financial information can also be kept secret. Source

Secret deals (NDAs) with data centers · Sept 1, 2026
No state law clearly bans or allows public officials to sign NDAs with data center companies. Governor Armstrong says open records law already stops officials from using NDAs to hide public records; supporters of SB 2406 say there is no real penalty. Applied Digital told lawmakers it used an NDA for about six weeks for the Harwood project before permitting began. Stark Power says it will not use NDAs for its proposed Mandan project. The 2026 bill to ban NDAs failed; a new one is expected in 2027. Source

Who uses the data center tax break: partly public · March 24, 2025
Since SB 2038 (2025), itemized claims by data center owners for 2025 and later can be made public. Before that, the names and addresses of the companies were kept confidential. The Tax Department presents yearly totals to lawmakers. Source

💧 Water

Water permits: Department of Water Resources · Oct 8, 2026
Any industrial water use, including a data center with its own wells or river intake, needs a water appropriation permit from the North Dakota Department of Water Resources (DWR). Before deciding, the applicant must send certified-mail notice to landowners within 1 mile, permit holders within 1 mile and city and public water systems within 12 miles, and DWR publishes notice in the county newspaper twice. You have until 5 p.m. on the first business day 30 days after the first newspaper notice to send written comments or ask for a public hearing. People who comment get DWR's recommended decision. Source

Data centers that buy water from a city or rural water system · Sept 2, 2026
If a data center buys water from a city or rural water system, the deal is made with that water supplier, so ask the city or water district board for the water contract. Data center wastewater discharges are reviewed by the Department of Environmental Quality case by case. Source

🌫️ Air and generators

Air permits for generators and gas plants: Department of Environmental Quality · Sept 2, 2026
Backup diesel generators, gas turbines and power plants need air permits from the North Dakota Department of Environmental Quality (DEQ). DEQ posts a public notice and comment period before it issues bigger permits. DEQ told lawmakers that data center air permits are reviewed case by case and usually take six to nine months. DEQ no longer keeps a public list of construction permit applications in progress; you can search permit documents in its CERIS-ND system if you know the site. Source

Power plants and big power lines: PSC siting permits · Oct 8, 2026
The PSC must approve the site of any power plant over 50 megawatts (wind over half a megawatt), utility-scale batteries, and power lines over 115 kilovolts. Backup generators at a data center are not counted. Source

🙋 How to have your say

Who decides a data center near you · Oct 8, 2026
Inside a city, the city council or commission decides zoning, after its planning and zoning commission. Cities can also zone land just outside town: up to 1 mile (cities under 5,000 people), 2 miles (5,000-25,000) or 4 miles (25,000 or more). In the countryside, some townships zone their own land through the township board of supervisors (for example Harmony Township in Cass County); elsewhere the county commission decides, after the county planning and zoning commission. Source

Zoning hearings: watch the official newspaper · Oct 8, 2026
Cities and counties must publish notice of a zoning change in the official newspaper once a week for two weeks before the hearing. Anyone can speak at the hearing. The board must state its reasons in writing for approving or denying a rezoning or variance. Source

City rezoning: a 20% neighbor protest needs a three-fourths vote · Oct 8, 2026
If owners of 20% or more of the land being rezoned, or of the land within 150 feet around it, sign a written protest, the city council needs a three-fourths vote of all members to pass the change. File the protest with the city auditor before the hearing. Source

County zoning changes: ask for a separate hearing within 30 days · Oct 8, 2026
After a county adopts a zoning change, anyone harmed by it can file a written petition with the county auditor within 30 days of the first published notice, asking for a separate hearing. The county commission must hold it 7 to 30 days later and then keep or cancel the change. Source

Appeal to court within 30 days · Oct 8, 2026
You can appeal a zoning decision of a county commission or a township board to district court. The notice of appeal must be filed with the clerk of court within 30 days after the decision. A city board of adjustment decision is first appealed to the city council or commission within 15 days, and then to district court within 30 days. Source

Speak up at the Public Service Commission · Oct 8, 2026
Rate cases and siting cases are listed on the PSC case search (for example PU-26-215 for Otter Tail's data center rate and PU-26-241 for MDU's rate increase). Each case has a notice of opportunity for hearing with a deadline. You can contact the PSC (ndpsc@nd.gov, 701-328-2400), take part in hearings, or ask to intervene as a party, as Geronimo Power did in PU-26-215. Source

Talk to the Legislature before 2027 · Sept 2, 2026
The interim Artificial Intelligence and Data Center Committee holds public meetings with time for public comment. The 2027 session starts in January; bills will have public hearings where anyone can testify in person or in writing. Source

🧾 Help with your bills

LIHEAP: help with heating and cooling bills · Oct 8, 2026
North Dakota Health and Human Services helps pay for heat (natural gas, electricity, propane, fuel oil, wood and more), furnace cleaning and repair, weatherization, and cooling devices. Since 2025 you can apply any time of year. Apply online in the Self-Service Portal, at your local Human Service Zone office, or by mail. For a shut-off notice or empty fuel tank, call the Customer Support Center at 1-866-614-6005. Free help applying: Community Options, 1-800-823-2417. Source

Community Action: weatherization and emergency electric help · Oct 8, 2026
If you are approved for LIHEAP, your local Community Action Partnership agency may help weatherize your home, repair or replace a furnace, and help with emergency electric costs through Energy Share when electricity is not your main heat. Source

📞 Who to contact

North Dakota Public Service Commission (PSC) · Oct 8, 2026
Approves rates of investor-owned utilities (such as MDU and Otter Tail) and data center power contracts with them; sites power plants and big power lines. Phone 701-328-2400, ndpsc@nd.gov. Source

North Dakota Department of Environmental Quality (DEQ) · Oct 8, 2026
Air permits for generators and gas plants, wastewater permits, public notices. Source

North Dakota Department of Water Resources (DWR) · Oct 8, 2026
Water appropriation permits for wells and river water. Source

Office of State Tax Commissioner · Oct 8, 2026
Certifies data centers for the sales tax break and reports its cost. Source

North Dakota Attorney General: open records and meetings · Oct 8, 2026
Reviews complaints about denied records and closed meetings (ask within 30 days). Source

North Dakota Legislative Council · Oct 8, 2026
Bills, laws (Century Code), interim committees and meeting schedules. Source

North Dakota Health and Human Services: LIHEAP · Oct 8, 2026
Help with heating and cooling bills. Customer Support Center 1-866-614-6005. Source