Harwood North Dakota voters reject data center restrictions

Harwood North Dakota voters reject data center restrictions

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“When all of this came about, it was like being hit between the eyes with a sledgehammer,” Amanda Swartz told Fortune. Her husband, Michael, a senior software developer who has lived in Harwood for nearly 20 years, has been at the center of a local struggle that stands in stark contrast to national trends.

In a midterm election cycle defined by a widespread American resistance to the rapid expansion of data centers, the small North Dakota town of Harwood chose a different path. While 44 out of 45 ballot measures regarding data centers across the country failed, Harwood voters rejected an initiative that would have placed strict limitations on large-scale industrial developments. According to data from Redbud Consulting, approximately 75% of the 430 votes cast on Tuesday—totaling 325 residents—opposed the measure, effectively clearing the way for continued industrial growth.

The battle over Harwood’s Home Rule Charter

The failed initiative sought to amend the town’s Home Rule Charter to impose new requirements on how the city evaluates, approves, and administers building projects. Specifically, the measure would have mandated independent reviews and public hearings for industrial developments. The push for these restrictions followed the groundbreaking of a 160-acre data center in Harwood, a project overseen by Applied Digital Corp. with Oracle as the end-user.

The project, which is scheduled to become fully operational next year, has the potential to expand to 900 acres. For the residents who led the charge against it, the speed of the development was a primary concern. Michael Swartz noted that Harwood residents only learned about the construction about three weeks before work began in September 2025. He also pointed to a lack of transparency, noting that the Fargo Forum reported that then-Fargo Mayor Tim Mahoney and Harwood Mayor Blake Hankey had signed nondisclosure agreements with Applied Digital Corp. as early as July.

“Long term, there’s some really serious implications that I don’t think have been fully fleshed-out, or vetted, or even are getting talked about, at the scale that I think they need to be addressed,” Swartz told Fortune.

Swartz, who helped form the grassroots advocacy group Voices of Harwood, expressed concerns regarding noise pollution, particularly because an elementary school sits within a mile of the campus. He also alleged that the version of the measure that eventually reached the ballot differed significantly from the one his group originally presented to the election committee, making it more difficult for voters to grasp the true intent of the initiative.

Economic benefits versus administrative burdens

The divide in Harwood mirrors a larger national debate over whether the tax revenue generated by massive tech infrastructure outweighs the local control lost to industrial neighbors. Local officials were vocal in their opposition to the charter amendment, citing both fiscal and logistical risks.

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Mayor Blake Hankey argued that the amendment would create an undue administrative burden on the town and establish a precedent that could require public votes for every minor municipal issue. City Councilman Chris Higgins expressed a different fear: that the new restrictions might cause Applied Digital Corp. to de-annex the project, which would result in a significant loss of tax revenue. Mayor Hankey estimated that the data center would contribute $1.65 million in taxes by 2028.

The financial stakes were further complicated by local business interests. The Fargo Moorhead West Fargo Chamber of Commerce actively worked to oppose the measure, distributing materials that claimed the amendment could cost taxpayers between $300,000 and $544,000 and increase annual taxes by thousands of dollars due to lost development opportunities. Cale Dunwoody, the chamber’s vice president for public policy, stated the organization worked to provide voters with what they termed “accurate information.”

Applied Digital Corp. defended its presence in the region, citing the area’s cooler climate and energy access as primary drivers for the location. Nick Phillips, the company’s executive vice president of external affairs, emphasized the potential for job creation and economic benefits. He also pushed back against claims of a lack of communication, stating that the company engages in town halls and public forums well beyond what is legally required.

Why affordability drove the vote

While many communities across the country are blocking data centers due to concerns over energy consumption and environmental impact, the outcome in Harwood suggests a more immediate motivator: the cost of living. Data from the Pew Research Center has indicated that half of Americans believe data centers will negatively impact energy costs, but in Harwood, the fear of lost tax benefits seemed to carry more weight.

For a small population of roughly 940 people, the math of municipal finance is personal. The decision likely came down to the immediate pressure on household budgets rather than long-term industrial planning.

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Stakeholder Perspective Primary Argument
Voices of Harwood Lack of transparency and potential noise pollution near schools.
City Officials Administrative burden and loss of $1.65 million in projected tax revenue.
Chamber of Commerce Potential for increased taxpayer costs and lost development.
Applied Digital Corp. Economic benefits through job creation and pro-business landscape.

“We live in a climate right now where money is tight. Pocketbooks are getting squeezed by things that are way outside of our control,” Swartz said, noting that many residents are living paycheck-to-paycheck and cannot afford additional assessments on their monthly housing payments.

As the data center moves toward its operational phase next year, the tension between rapid technological expansion and local community stability remains unresolved. The Harwood vote serves as a rare outlier in a national trend, suggesting that in some corners of the country, the promise of a stabilized tax base can override the desire for industrial regulation.

“There’s people out there that are probably living paycheck-to-paycheck,” Swartz said. “They can’t afford to have more special assessments levied out on that monthly house payment. That would break them.”

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