By ELLENDALE, N.D. — Of all the issues discussed during a town hall about Applied Digital’s data center projects, the greatest concern amongst locals is the heavy traffic generated by the company’s construction activities.
Applied Digital officials listened to concerns and fielded questions during a town hall last week in Ellendale, N.D., where residents in the border community say streets and roads have been beaten up.
Nick Phillips, executive vice president of public affairs and real estate acquisition, detailed Applied Digitals’ efforts to create safer driving conditions.
The company has conducted safety seminars to address safe driving practices, but has little control over drivers who are employed by various subcontractors, he said.
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There are about 1,400 workers going into and out of the area where Applied Digital has one data center building in operation just west of town and is building two more.
During shift changes, Phillips said, the traffic can get chaotic.
Applied Digital’s Martin Vega and Nick Phillips field questions on traffic conditions during a town hall at the Ellendale Opera House on Wednesday, Dec. 17 in Ellendale, N.D. The company is building three large data center facilities just west of town. Aberdeen Insider photo by Shannon Marvel.
Intersection of State Highway 11, 87th Avenue is problematic
The road that runs from State Highway 11 north to the data center is 87th Avenue. That junction is a problem area as semi drivers aren’t yielding to oncoming traffic going 65 mph, according to some residents who were at the meeting. They claimed that a few days before the town hall, a semi turned from 87th Avenue onto Highway 11 in front of a school bus, forcing the bus driver to slam on the brakes to avoid crashing.
That Highway 11 doesn’t have wide shoulders complicates the problem and increases the risk, the locals said.
Only one truck at a time can turn from the graveled 87th Avenue onto State Highway 11, and truck drivers don’t want to wait to turn left or right and create a backup in outgoing traffic.
But Applied Digital’s efforts to remedy the conditions creating the quagmire have been met with resistance from the Ellendale Township Board, according to the company.
Martin Vega, who manages community relations in Ellendale for Applied Digital, said the company has paid $300,000 in overweight fees and another $100,000 in maintenance costs related to the use of 87th Avenue to Ellendale Township.
“Those overweight fees did not go to maintenance of that road. They went to maintenance of all the other roads in the township. We paid $400,000 in maintenance directly to maintain that road,” he said.
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There are improvements in the works that would pave a section of 87th Avenue and widen the roadway so two turning lanes can be added at that intersection.
Those improvements would be nearly finished by now had Ellendale Township board members not intervened, according to the Applied Digital representatives. Now, that work will have to be done next summer.
Vega also addressed the concerns about the semi driver pulling out in front of the school bus after being asked if the driver was still working on the data center project. Vega said he and other members of his team have met with the driver’s employer, but that the situation isn’t simple.
The incident is being investigated, and any resulting action will be based on the investigation’s findings, Vega said.
Since the matter was not immediately reported to the Dickey County Sheriff’s Office, the only evidence that can be gathered is witness statements, he said.
Both Vega and Phillips said they will continue to emphasize safety concerns and ways to improve traffic challenges by visiting with local and state officials.
Ellendale officials considering city street projects
Flaherty
Ellendale Mayor Don Flaherty discussed what the city has been doing to improve streets in town.
“Well, we do have a road project that we’re striving to do in 2026, but that’s a street project that, truthfully, has been in the forecast for roughly at least four or five years. So that street project is not anything I would tie directly to Applied Digital as much as I would say it’s a planned project that the city has had to do,” Flaherty said.
The Ellendale City Council is now determining how much to budget for more capital improvements, including street work, he said.
But the two main arteries through town, the highways that have taken a beating within city limits, are controlled by the state, and the city doesn’t determine what work is done when, Flaherty said.
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“When they’re ready to do whatever work they do, they basically tell us, and then we’re responsible for a 25% share or something like that for those areas that are in city limits,” he said. “So, they have to make those decisions. We have no control over that.”
Applied Digital’s first data center building in Ellendale was completed in fall. Two others are in the works. Their aim is to enhance artificial intelligence services. The company’s work is a multibillion dollar investment in Dickey County that has come with both benefits and challenges. Data centers consume large amounts of energy.
