ELLENDALE, N.D. (North Dakota Monitor) – A large data center just outside of Ellendale has asked to be annexed into the city limits, a move that would increase tax revenue for the town.

Applied Digital said in a news release that it has submitted a formal petition to the city of Ellendale, which is the county seat of Dickey County in south-central North Dakota.

Ellendale Mayor Don Flaherty said a public hearing on the annexation will be held Dec. 19. The city may approve the annexation before the end of the year.

“The annexation of Applied Digital’s property is a significant step forward for the long-term growth and benefit of our city and residents,” Flaherty said in a news release. “This partnership will result in expanded municipal services available to all residents of Ellendale, an increased city budget, and meaningful tax relief for all of our residents.”

Applied Digital started operating just west of Ellendale in 2023, housing hundreds of computers used for cryptocurrency mining. A major expansion is underway for artificial intelligence computing.

“By becoming a formal part of the city, we can work hand-in-hand to foster economic development, enhance city services and public infrastructure, and contribute positively to the city’s financial outcomes, creating a win-win for both Applied Digital and the community,” Nick Phillips, executive vice president of external affairs at Applied Digital said in the news release.

An Ellendale housing project is expected to be completed in January of 2025 to help accommodate workers for Applied Digital.