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AI Data Center Turns Ghost Town into Boomtown in Ellendale

Ellendale, North Dakota, a small farm town that most Americans have never heard of, is suddenly headline news. A big AI data center campus built by Applied Digital — called Polaris Forge 1 — has poured people, projects, and money into a place that was shrinking. The change is real, and it should make conservatives proud of what private investment can do for towns left behind.

Polaris Forge 1: jobs, power, and reported tax windfall

Applied Digital’s Polaris Forge 1 is a massive AI data‑center campus. Public filings and company releases show the site is contracted for roughly 400 megawatts of IT load and has major tenants. Local leaders say the buildout brought thousands of construction workers, new full‑time tech and operations roles, and a sharp jump in taxable activity. Recent reporting quotes Mayor Don Flaherty and other officials saying the town’s sales‑tax receipts jumped dramatically and that the windfall will pay for long‑deferred streets, a public‑safety complex, school needs, and other projects. That big figure — widely reported — comes from local accounts; state taxable‑sales summaries corroborate a very large year‑over‑year rise, though municipal records are the best way to nail down the exact dollar amount.

Housing, utility credits, and the real local effects

The project didn’t just bring jobs; it brought housing and utility impacts too. Applied Digital matched private equity with a Bank of North Dakota loan to build worker rentals and an apartment complex to ease the housing crunch. Utilities and company filings show phased energization and ready‑for‑service milestones that have allowed the data center to use local wind generation and, in some cases, produce credits for nearby customers. Those are tangible benefits — more roofs, more local business, and lower net rate pressure for some consumers — but they also create pressure on local services and give one private employer outsized influence over a small town’s future.

Let the market lift towns — and stop the data‑center scolding

Here’s the conservative take: private investment, not another set of government plans, revived this town. That’s how markets are supposed to work. Yet data‑center critics on both sides act as if the only decent jobs come wrapped in orange jumpsuits and factory smoke. If a steel mill would get applause, why is a clean, high‑paying tech campus treated like a villain? Local officials admit the gamble has risks, but you don’t get revitalization by vetoing the future. If you care about Main Street, you should care when Main Street gets paying customers again.

Be smart — not reflexively hostile

Ellendale’s comeback is a useful reminder: welcome private capital, but insist on transparency and common‑sense rules. Confirm the exact tax numbers publicly, plan for housing and traffic, and avoid giveaways that turn community wins into corporate welfare. If policymakers act like busybodies and slam moratoria or hand out endless tax breaks, towns lose control. If they stay smart and let investment thrive under clear rules, America’s small towns can get a second act — one powered by innovation, not bureaucracy. That’s an outcome worth defending — and worth a little healthy skepticism toward the folks who make a hobby out of saying no to progress.

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