Minnkota Power executive Brendan Kennelly speaks with an attendee of a Public Service Commission hearing in Fargo, North Dakota on a powerline project north of the city. (Photo by Jeff Beach/North Dakota Monitor)
FARGO (North Dakota Monitor) — The cost of the powerline and substation needed by a data center north of Fargo has risen from $75 million to $110 million, but developers say the data center company will still cover the entire cost of the project.
Applied Digital needs the project to power its data center being built between Fargo and Harwood. The data center requires 280 megawatts of power at peak demand.
Applied Digital will pay for the project but it will be owned by Minnkota Power Cooperative.
The North Dakota Public Service Commission on Thursday held a hearing in Fargo on what is known as the Agassiz Transmission Line and Substation.
Minnkota’s permit application calls for a substation east of Interstate 29 near the data center. A 345-kilowatt powerline will connect to existing powerlines west and south of the substation.
The line, about 1.74 miles long, and substation will be on property already owned by Minnkota and next to an existing powerline along Interstate 29.
Minnkota Chief Operating Officer Brendan Kennelly told the commission Thursday that its large load customer, Applied Digital, would pay for the project upfront with no “cost shift” to customers of Cass County Electric, which will deliver power to the data center. Cass County Electric is a member of the Minnkota co-op family.
Minnkota is hoping to start construction later this month and have the line operating in the fall, but it still needs PSC approval.
Minnkota officials said the approximately 45% increase in the project cost is related to trying to meet the fall deadline, the scarcity of materials and tariffs.
There was no public testimony on the project. Commission Chair Randy Christmann said that was unusual, but given that the line is short and no landowners were involved, it is understandable.
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