Key Takeaways

  • State Sen. Tim Mathern wants North Dakota lawmakers to address AI and hyperscale data centers during a possible special session.
  • Five hyperscale centers already operate in the state, with additional projects planned, including Applied Digital’s 280-megawatt facility near Fargo.
  • Power demand, utility costs, grid reliability and infrastructure funding could become central issues for technology operators and state policymakers.

State Sen. Tim Mathern, D-Fargo, is urging North Dakota lawmakers to put artificial intelligence infrastructure and data centers on the agenda if Gov. Kelly Armstrong calls another special legislative session.

Armstrong is expected to call the session primarily to address kratom, an herbal substance derived from a tree native to Southeast Asia. Concerns about abuse have increased as the use of kratom and derivative products has expanded nationwide. The governor has announced a press conference for Monday, Aug. 3, where more details about a potential session could emerge.

Mathern sees a broader opening.

“No. 1 in the state is the whole issue of data centers, AI and data centers. I think that’s more important than kratom,” Mathern said in remarks reported by InForum.

North Dakota already has five hyperscale centers in operation, and more are planned. That footprint makes the state part of a much larger infrastructure race driven by cloud computing, generative AI and demand for high-performance computing capacity.

Applied Digital is developing a 280-megawatt AI data center near Fargo. A facility of that scale can place substantial demands on generation, transmission and local utility systems. Similar hyperscale infrastructure supports services delivered by Amazon Web Services and Microsoft Azure, although the source does not identify either provider as an operator of the Applied Digital project.

Data centers are no longer solely a zoning or economic-development matter. A large AI facility can consume hundreds of megawatts, putting its electricity needs in the same general range as hundreds of thousands of homes. That raises practical questions about who pays for new power plants, substations and transmission lines, and whether residential or commercial customers could face higher rates.

Those questions are surfacing well beyond North Dakota. Global data center electricity demand is projected to reach 1,000-1,300 terawatt-hours annually in 2026, equal to roughly 4-5% of worldwide electricity use. AI workloads and hyperscale campuses are major drivers. Meanwhile, hyperscale and cloud data center capital spending is expected to exceed $400 billion globally by 2027.

The investment opportunity is large, but so is the political exposure. Across the United States, 48 data center projects were blocked or delayed during 2025 because of local opposition, affecting an estimated $156 billion in planned investment. Coverage from KVRR has also reflected the growing regional attention surrounding large technology facilities and their implications for communities.

What could North Dakota lawmakers realistically address in a short special session? Potential topics include utility rate allocation, disclosure of projected electricity and water consumption, standards for backup generation, requirements for grid upgrades and rules governing public incentives. Lawmakers could also consider whether local governments need additional authority when negotiating development agreements.

Any policy response would need to distinguish among facilities. A cryptocurrency mine, cloud region and AI training campus may all be described as data centers, but their operating profiles, employment patterns and power requirements can differ considerably. Treating every project identically could create blunt rules that miss those distinctions.

Technical standards offer one starting point. The ANSI/TIA-942 standard covers data center power, cooling, telecommunications and site reliability, while the NIST AI Risk Management Framework provides a broader method for evaluating AI-related risks (source). Neither settles questions about taxes or utility rates, but both can help lawmakers identify operational issues that deserve scrutiny.

There is also a timing problem. Data center developers negotiate power contracts and site plans years before facilities become operational. Sudden rule changes can disrupt investment, while delayed oversight can leave utilities and communities committed to expensive infrastructure before costs are fully understood. Video reporting distributed through WDAY captured Mathern’s effort to elevate the issue before the session’s scope is finalized.

If Armstrong calls lawmakers back, it would be North Dakota’s second special session of 2026. Kratom may remain the formal catalyst. Still, Mathern’s intervention signals that AI infrastructure, once treated mainly as an economic-development prize, is becoming a state-level policy issue involving energy strategy, public finance and long-term grid planning.