Data Center interest emerges as major issue in McKenzie County and across North Dakota
Travis Bateman
Farmer Staff Writer
A rapidly growing push for artificial intelligence and cryptocurrency data centers is beginning to reshape conversations across western North Dakota, with state leaders, local governments, and residents now grappling with questions surrounding energy demand, water usage, zoning authority, infrastructure impacts, and public transparency.
What began as scattered discussions about cryptocurrency mining facilities has evolved into broader debate over large-scale “hyperscale” AI data centers and whether communities such as Watford City and McKenzie County are prepared for the industrial and utility demands those facilities could bring.
Gov. Kelly Armstrong has recently addressed the issue publicly, warning that while North Dakota could benefit economically from the expanding AI and data infrastructure industry, projects must not come at the expense of local residents or existing utility customers.
According to recent reporting by KFYR-TV, Armstrong said North Dakota currently does not have a data-center-specific statewide policy, but emphasized that local governments must remain deeply involved in the approval process.
“One, make sure you’re talking to the locals,” Armstrong said in comments reported by KFYR. “And two, don’t you dare raise consumers’ rates.”
The governor’s comments come as state officials report increasing interest from developers seeking to build facilities capable of supporting artificial intelligence computing, cloud storage, and cryptocurrency operations. In a 2025 report from KFYR/KUMV, North Dakota Commerce officials said they were receiving weekly inquiries from companies interested in locating data centers in the state.
Armstrong has also framed the issue as one involving national security and domestic technology production, arguing that AI infrastructure development should remain within the United States rather than overseas. However, he simultaneously cautioned that local infrastructure, electrical grids, and water systems cannot be ignored in the process.
McKenzie County Already Seeing Data Center Development
While statewide discussions continue, McKenzie County has already experienced direct proposals tied to the industry.
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