BISMARCK, N.D. – The Artificial Intelligence and Data Center Committee met Monday to evaluate the growth, grid impacts, and regulatory frameworks surrounding data centers in North Dakota.
Dr. Robert Mayo, a research specialist with the Chally Institute for Global Innovation and Growth at North Dakota State University, testified on operational distinctions between grid-connected and self-powered hyperscale facilities. Highlighting rate impacts, Mayo stated:
“A study in 2026 from the Electric Power Research Institute found data center growth actually pushed average residential rates down by about 6% between 2019 and 2024.”
Addressing public concerns over cooling infrastructure, Mayo stated:
“In Ellendale, Applied Digital’s facility uses closed-loop cooling. And it reports using less water than one average single-family home.”
James Dickey, publisher of Hyperscale News, addressed water and land usage, noting that Texas data center campuses use roughly 8 billion gallons of water annually compared to 17 billion gallons at generation plants. Discussing local economic outcomes, Dickey noted:
“Data centers are a tiny percent of the land but 38 percent of general fund revenue and as a result Loudoun County has been able to reduce property tax rates for homeowners for each of the past 10 years”.
Addressing state regulatory authority, Public Service Commission Chair Randy Christmann detailed the state’s coal and renewable energy reclamation frameworks. Christmann noted that active coal permits cover 135,000 acres backed by nearly half a billion dollars in performance bonds.
Regarding environmental oversight, Jim Semerad and Marty Harrelson of the Department of Environmental Quality confirmed that data center water discharges and air quality applications undergo case-by-case reviews, with air permits typically taking six to nine months.
Aaron Birst of the Association of Counties testified on local zoning authority, emphasizing:
“If these matters, whether it’s an AI center or industrial concentrated feeding lot operation, to be successful, you absolutely have to have that public buy-in.”
During a 45-minute public comment period, local residents and candidates voiced concerns regarding water usage, non-disclosure agreements, and property rights. Mercer County resident Michael Berg advocated for transparency.
“How much will we gain? What will it cost us? What will be left? When a Texas Republican and a Pennsylvania Democrat pivot to the same decision in the same week, it becomes clear that the politics of data centers have shifted,” he said.
The committee announced its next meeting will occur on October 6, 2026.
