Graded Minimal and tightening. 8 laws, orders, rulings and local actions, each with its source, reviewed 23 October 2026.
PSC's April 15, 2026 Agassiz line variance shows standard service; the commission does not regulate data centers and no large-load study rule exists.
No large-load tariff exists; cooperatives serve most projects outside PSC rate regulation and the October 20, 2026 cost-shift bill is only a draft.
Morton County's moratorium, in force as of August 2026, is one local pause outside the Cass County market; no statewide siting rule.
The 2015 sales tax exemption on IT equipment is intact and uncapped; the August 2026 call to revisit it in 2027 is not an action.
Nothing in force; the NDA ban SB 2406 failed 32 to 15 in the September 2026 special session.
Scored on rules in force, 1 to 5. 5 is the most regulated. Pending rules set the arrow.
North Dakota exempts data center IT equipment from sales tax, a break that cost more than $65 million in 2025, and most large projects are served by cooperatives outside Public Service Commission rate regulation. The commission's role has been limited to siting power lines such as the one for Applied Digital's 280 MW campus near Harwood. A legislative interim committee on AI and data centers began meeting in July 2026 amid heavy public comment, and Morton County has a moratorium in place while it rewrites its ordinance. In a special session in early September 2026 lawmakers rejected a ban on nondisclosure agreements between data center developers and public officials.
The interim committee heard 2027 bill frameworks on 20 October 2026: Rep. Anna Novak's draft would write bring-your-own-power into law, bar cost shifting to ratepayers and require closed-loop cooling and a bonded decommissioning plan, Sen. Dean Rummel would narrow the sales tax exemption to computing equipment, and Sen. Jose Castaneda would require every county to adopt a data center ordinance. No drafts were voted on; the Legislature convenes in January 2027, where nondisclosure agreements and community benefit agreements are also expected topics. Morton County's revised ordinance went to its County Commission on 10 September 2026 and adoption has not been confirmed, and Harmony Township's vote on a two-year development moratorium was canceled on 22 October without a new date. A Public Service Commission seat is on the 3 November 2026 ballot.
No statewide moratorium, but 1 local pause is in force as of 23 October 2026, in Morton County. Proposals and expired pauses are not counted.
Tightening. North Dakota is graded Minimal, which means few binding rules, with new incentives or fast-track permitting in force. Open for now; 2027 bills would mandate own power and trim the tax break. The outlook above says what is pending.
North Dakota sits in MISO and SPP. The grid operator decides how a new large load is studied, what it must bring or pay, and whether it can be curtailed first; the state decides siting, permits, tariffs and incentives.
No. North Dakota's data center incentives were not pulled back in 2025 or 2026 as of 23 October 2026.
On Genloop's five-line rubric (1 least regulated, 5 most) North Dakota scores grid connection 1, power rates 1, siting and land use 2, tax treatment 1, permits and water 1, a mean of 1.2. The most regulated line is siting and land use: Morton County's moratorium, in force as of August 2026, is one local pause outside the Cass County market; no statewide siting rule.
8 items: each is a law, order, tariff, ruling, utility action or local decision that changes what a data center must do, pay or disclose, or where it may be built. Failed and pending measures are marked. Each links to its source.
Created by Legislative Management and chaired by Rep. Jonathan Warrey, it first met on July 15, 2026 with more than 70 people attending and held five meetings through October. Cities, counties and business groups circulated a model local ordinance. At its October 20, 2026 meeting lawmakers presented 2027 bill frameworks: Rep. Anna Novak's draft would write bring-your-own-power into law, bar cost shifting to ratepayers, require closed-loop cooling and a bonded decommissioning plan; Sen. Dean Rummel would narrow the sales tax exemption to computing equipment; Sen. Jose Castaneda would require every county to adopt a data center ordinance.
Source: northdakotamonitor.comOn October 20, 2026 Rep. Anna Novak outlined a bill that would put bring-your-own-power into statute, prohibit shifting data center costs to ratepayers, require closed-loop cooling and require a bonded decommissioning or repurposing plan. Sen. Dean Rummel proposed limiting the sales tax exemption to computing equipment, cutting its value from tens of millions to a few million dollars a year, and Sen. Jose Castaneda proposed requiring every county to adopt a data center ordinance. No drafts were voted on; the session opens in January 2027.
Source: northdakotamonitor.comThe township scheduled an October 22, 2026 vote on a two-year development moratorium that Geronimo Power says would jeopardize its proposed data center, which is in conditional use review next to its permitted solar and storage project; the meeting was canceled without a new date.
Source: valleynewslive.comDuring the September 2026 special session lawmakers voted 32 to 15 against SB 2406, which would have barred nondisclosure agreements between data center developers and public agencies or officials, after it failed to win support in committee. Governor Kelly Armstrong said no official can get around open records laws by signing one. Sponsors expect the issue to return.
Source: valleynewslive.comThe county has a data center moratorium in place. On 26 August 2026 its planning commission recommended a revised ordinance (wider public notice, lighting, noise, generator and setback rules) to the County Commission for 10 September.
Source: kfyrtv.comCreated in 2015 and set in its current form in 2021, the exemption covers servers, cooling and other IT equipment but not construction. Its cost rose from $5.4 million in 2021 to more than $65 million in 2025, and legislators said in August 2026 it should be revisited in 2027.
Source: valleynewslive.comA Republican candidate for the Public Service Commission called in May 2026 for a moratorium on data center development.
Source: kfgo.comOn April 15, 2026 the Public Service Commission granted a temporary variance letting Minnkota Power Cooperative start grading for a $110 million substation and 1.74-mile 345 kV line serving Applied Digital's campus near Harwood, which needs up to 280 MW; Applied Digital pays the cost up front and the full project approval was still pending. Chair Randy Christmann said the commission does not regulate data centers themselves.
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