Harwood voters reject data center curbs in 845-person town

By Elena Vasquez

Harwood voters rejected tighter data-center rules by 325 to 105 on Nov. 3, alongside the U.S. midterm elections, while Applied Digital’s $3 billion project remains scheduled to be fully operational in early 2027. The vote in the 845-resident North Dakota town followed debate over power, noise and environmental effects.

What did the ballot measure require?

The proposal would have imposed independent reviews and public hearings on new large-scale industrial developments, including data centers. It would also have covered changes to existing facilities.

• 105 voters, or 24.4%, backed tighter rules.
• 325 voters, or 75.6%, opposed them.

The result ran counter to dozens of U.S. cities and towns that approved data-center construction restrictions the same day. The Washington Post said Harwood may have been the only U.S. community to vote in favor of data-center construction that week.

Why did Harwood reject the curbs?

Harwood sits next to Fargo and functions largely as a bedroom community, with residents commuting to nearby larger cities. Beyond a few bars and a grain storage facility, the town has little industry.

The debate began after Texas-based Applied Digital decided to invest $3 billion to build a data center at the edge of town. Initial opposition was substantial, driven by power consumption, noise and environmental effects.

Resident Michael Swartz criticized city officials for being too accommodating of a large developer seeking profit from the AI boom. He told The Washington Post: “This project is changing our small town,” adding that it was unclear whether the change was for the better.

Swartz led the push to put the measure on the ballot and examine those issues. The proposal sought independent reviews and public hearings for major industrial development.

What changed voters’ minds?

Public support shifted as the economic benefits of hosting the data center came into focus, including expanded tax revenue and job creation. City officials estimate property-tax revenue will reach $1.65 million after completion, roughly six times what Harwood collected in property taxes in 2024.

Applied Digital expects the project to create at least 200 full-time jobs. The developer has also donated to the local fire department and set up a warming shelter at a park.

Mayor Blake Hankey said the data center was going to be built in roughly the same area anyway. If it would operate nearby, he argued, Harwood should reap the tax benefits.

How did electricity concerns ease?

Residents worried about rising electricity bills also began to change their minds. Mark Kirkbride, a 40-year resident, said his concerns eased after speaking with officials at the local utility.

Kirkbride said: “Once I could feel at ease about the power issue, I switched to supporting it.” He added that his switch was “not because I like data centers or AI, but because this project is very beneficial for Harwood.” He said the town had nearly driven away a company that could turn out to be a good neighbor.

Where is resistance stronger?

In Piqua, Ohio, voters approved a measure banning large data centers, and officials who had supported the project were removed in a recall vote. Resistance to AI data centers has spread across the United States and Europe, while national sentiment has turned negative.

How are technology companies responding?

Technology companies are rolling out steps to address community concerns. OpenAI recently said it would disclose water use at its data centers, stop signing nondisclosure agreements and conduct independent noise studies.

What happens next?

For developers, the vote offers a local counterpoint to Piqua’s ban: residents rejected tighter scrutiny after projected tax revenue and jobs outweighed power objections. Applied Digital broke ground last fall, and the facility remains scheduled to be fully operational in early 2027.