Applied Digital stock soared 19% on Monday after announcing plans to break ground in September 2025 on Polaris Forge 2, a $3 billion, 280-megawatt AI data center near Harwood, North Dakota.

The facility, which will have initial capacity in 2026 and reach full capacity in early 2027, is designed with the ability to scale beyond its initial 280MW capacity, according to a company press release. This expansion comes as analysts tracked by InvestingPro anticipate significant sales growth, with revenue projected to more than double in fiscal year 2026.

Applied Digital has contracted more than 900 acres for the campus and secured power through Cass County Electric Cooperative. The proposed development initially includes two facilities with capacity for future expansion.

The company stated it is in advanced negotiations with a U.S.-based investment-grade hyperscaler for the campus. Once fully operational, the site is expected to employ more than 200 full-time employees, in addition to long-term contractors.

"The demand for AI capacity continues to accelerate, and North Dakota continues to be one of the most strategic locations in the country to meet that need," said Wes Cummins, CEO of Applied Digital.

The new project builds on the company’s existing Polaris Forge 1 campus in Ellendale, North Dakota. Applied Digital cited the state’s abundant energy, available land, and pro-business climate as factors in its expansion decision.

North Dakota Governor Kelly Armstrong noted that Applied Digital has invested in workforce housing and created local partnerships in Ellendale, expressing enthusiasm for the company’s expansion to Harwood.

Power for the facility will be provided through Cass County Electric Cooperative, with Minnkota Power Cooperative serving as the generation and transmission provider.

The groundbreaking is scheduled to take place next month as the company moves forward with site development.