Utility Tariff Analysis · Updated September 2026

Montana-Dakota Utilities' High Density Contracted Demand Response Tariff: What It Means for AI Data Centre Siting in North Dakota

At least 10 MW of high-density computer processing demand with an 85 percent minimum load factor requires an agreement between MDU and the customer under the High Density Contracted Demand Response Tariff — a structure written with data centre and high-performance computing loads specifically in mind, given the 10 MW entry point is far lower than most other states' large-load thresholds.

Montana-Dakota Utilities' High Density Contracted Demand Response Tariff — AI data centre infrastructure

Montana-Dakota Utilities' High Density Contracted Demand Response Tariff

ND

Montana-Dakota Utilities

PU-22-337

Regulatory docket / filing reference

At least 10 MW of high-density computer processing demand with an 85 percent minimum load factor

Who the tariff applies to

At least 10 MW of high-density computer processing demand with an 85 percent minimum load factor requires an agreement between MDU and the customer under the High Density Contracted Demand Response Tariff — a structure written with data centre and high-performance computing loads specifically in mind, given the 10 MW entry point is far lower than most other states' large-load thresholds.

Also active in North Dakota: MDU is already serving two Applied Digital data centre projects under this framework, in Ellendale (530 MW, with existing customers estimated to save about $250/year once fully built out) and Center (430 MW).

Named Projects Already Underway

CustomerLocationDetails
Applied DigitalEllendale, ND530 MW data centre project; MDU estimates existing customers could save about $250/year once fully built out
Applied DigitalCenter, ND430 MW data centre project

Figures compiled from the Edison Electric Institute's "Large Load Projects and Tariffs" (September 2026) member-company summary and public regulatory filings. Confirm current tariff terms directly with Montana-Dakota Utilities and the relevant state public utility commission before relying on any figure for a capital decision.

Weighing North Dakota against another state or a Canadian province with a different rate and interconnection picture entirely? Run both sides of the comparison through our licensed AI data centre cost configurator — it applies each jurisdiction's actual power rate, tax treatment and large-load tariff rules to the same seven build configurations.

Model This State on Your Own Site

Every figure above comes from the same power-cost and tariff dataset behind the SCR AI Build Configurator — a licensed, embeddable widget that models seven data centre build configurations against all nine Canadian provinces and all 50 US states plus DC, returning capital expenditure by line item, energy cost, revenue by commercial structure, EBITDA and payback.

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Frequently Asked Questions

What is Montana-Dakota Utilities' High Density Contracted Demand Response Tariff?

At least 10 MW of high-density computer processing demand with an 85 percent minimum load factor requires an agreement between MDU and the customer under the High Density Contracted Demand Response Tariff — a structure written with data centre and high-performance computing loads specifically in mind, given the 10 MW entry point is far lower than most other states' large-load thresholds.

Why did Montana-Dakota Utilities introduce this large-load structure?

To ensure the cost of new generation, transmission and distribution infrastructure built to serve very large customers, chiefly hyperscale data centres, is paid for by those customers rather than spread across the general rate base of residential and small commercial ratepayers.

What large data centre projects are already active in North Dakota?

MDU is already serving two Applied Digital data centre projects under this framework, in Ellendale (530 MW, with existing customers estimated to save about $250/year once fully built out) and Center (430 MW).

Does this tariff replace North Dakota's standard commercial and industrial rates?

No. Montana-Dakota Utilities' High Density Contracted Demand Response Tariff sits above Montana-Dakota Utilities's standard commercial and industrial rate schedules and applies specifically to customers that meet or exceed the large-load threshold described above. Smaller commercial and industrial loads continue to be billed under existing rate schedules.

How can I model a North Dakota data centre build against this tariff and other states?

The SCR AI Build Configurator applies North Dakota's power cost, tax treatment and large-load tariff rules alongside all other US states and Canadian provinces, so a North Dakota scenario can be compared line-by-line against any alternative site.