applied digital toronto ai data center
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applied digital toronto ai data center
cancelled (2026)
Applied Digital told South Dakota media in March—April 2026 that the Deuel County site was “unlikely to go forward,” and that it would let its land option lapse, after the 2026 legislative session rejected data-center sales-tax exemptions.
The project is dead. The original scope was roughly $5B and 430 MW.
Sources: Data Center Dynamics, South Dakota Searchlight
Estimated 200 permanent jobs with average salary of $64,000. No zoning currently exists in Deuel County, which must be addressed before construction. Company has offered tours of existing facility in Ellendale, North Dakota.
| Investment | $16.0B |
| Power Capacity | 430 MW |
| Location | Toronto, Deuel County, South Dakota |
| Status | Cancelled (2026) |
project overview
Estimated 200 permanent jobs with average salary of $64,000. No zoning currently exists in Deuel County, which must be addressed before construction. Company has offered tours of existing facility in Ellendale, North Dakota.
location and scale
| Location | Toronto, Deuel County, South Dakota |
| Region | Eastern South Dakota |
| Status | Cancelled (2026) |
| Total Investment | $16.0B |
| Power Capacity | 430 MW |
| Total Area | 1.8M sq ft |
key stakeholders
| Sponsors | Applied Digital |
| Operators | Applied Digital |
investment breakdown
The $16.0 billion investment is distributed across multiple components:
| Component | Amount | Percentage |
| IT Equipment (GPUs, servers, networking) | $10.4B | 65% |
| Building and Construction | $3.2B | 20% |
| Power Infrastructure | $1.6B | 10% |
| Other (cooling, security, land) | $800M | 5% |
equipment refresh cycles
IT equipment typically requires replacement every 3-5 years, meaning:
- Initial deployment: $10.4B
- 3-year refresh: Additional $8.3B estimated
- Total over 10 years: $26.0B in equipment
infrastructure requirements
power capacity
The facility requires 430 MW of power capacity:
| Total Power Capacity | 430 MW |
| Equivalent Homes Powered | 358,333 |
| Annual Energy Consumption | 3,766 GWh/year |
| Renewable Energy | Yes - committed to renewable sources |
facility specifications
| Total Area | 1.8M sq ft |
| Raised Floor Space | 1.3M sq ft (estimated) |
| Power Density | 338 W/sq ft |
sustainability and cooling
| Cooling Technology | Air cooling systems |
| Renewable Energy | Yes - renewable energy integration |
Cold climate reduces cooling costs and water consumption. Site selected near gas turbine and pipeline infrastructure.
construction timeline
| Announced | 2025-04 |
| Construction Start | 2026 |
| Expected Completion | 2027-2028 |
economic impact analysis
job creation
| Peak Construction Jobs | 32,000 |
| Permanent Operations Jobs | 86 |
| Average Salary (estimated) | $85,000 - $120,000 |
economic multiplier effects
The project’s total economic impact extends beyond direct investment:
| Direct Investment | $16.0B |
| Total Economic Impact (2.5x multiplier) | $40.0B |
| Estimated Annual Tax Revenue | $80M |
| 30-Year Tax Revenue | $2.4B |
regional benefits
The project brings significant benefits to South Dakota:
- Supply chain development: Local suppliers for construction materials, equipment, and services
- Infrastructure investment: Improved power grid, roads, and telecommunications
- Technology ecosystem: Attracts related tech companies and talent
- Educational partnerships: Training programs and university collaborations
- Real estate development: Increased commercial and residential development
technical specifications
workload types
| Workload Type | Description |
| AI-ML | Artificial Intelligence and Machine Learning training and inference |
| HYPERSCALE | Large-scale cloud computing and storage |
| CLOUD | Public cloud services and platforms |
ai/ml capabilities
This facility is specifically designed for AI/ML workloads with:
- High-density GPU computing: NVIDIA H100, H200, or GB200 GPUs
- Advanced cooling: Direct-to-chip liquid cooling for high power densities
- High-speed networking: 400G/800G Ethernet or InfiniBious InfiniBand
- Massive storage: Multi-exabyte storage capacity for training data
- Low-latency architecture: Optimized for distributed training workloads
rack density and power
| Rack Power Density | 30-100+ kW per rack (AI-optimized) |
| Cooling Technology | Direct liquid cooling (DLC) / Immersion cooling |
| PUE Target | 1.1 - 1.3 (industry leading) |
strategic importance
competitive positioning
This mega-project represents a strategic investment by Applied Digital to:
- AI Leadership: Establish dominance in AI infrastructure and capabilities
- Compute Capacity: Scale compute resources for next-generation AI models
- Competitive Response: Match or exceed competitor AI infrastructure investments
- Cloud Expansion: Grow public cloud market share and regional presence
- Customer Proximity: Reduce latency for regional enterprise customers
- Service Diversity: Enable new services requiring massive compute resources
national infrastructure significance
As a mega-project (>$10B investment), this facility:
- Represents a major commitment to US technology infrastructure
- Contributes to national AI competitiveness and security
- Demonstrates South Dakota’s emergence as a datacenter hub
- Sets new standards for scale and efficiency in datacenter design
regional integration
South Dakota datacenter ecosystem
This project integrates into South Dakota’s growing datacenter infrastructure:
- Power grid integration: Connection to regional transmission infrastructure
- Fiber connectivity: Access to major internet backbone routes
- Skilled workforce: Leverage regional technical talent and training programs
- Supply chain: Integration with local construction and equipment suppliers
community relations
Large-scale datacenter projects require strong community partnerships:
- Local hiring commitments: Priority hiring for construction and operations roles
- Educational partnerships: STEM programs and technical training initiatives
- Infrastructure improvements: Road, water, and utility infrastructure upgrades
- Tax revenue sharing: Property tax and incentive agreements with local governments
Deuel County impact
The project specifically impacts Deuel County through:
- Direct property tax revenue and economic development incentives
- Increased demand for housing, retail, and professional services
- Enhanced infrastructure that benefits broader community
- Recognition as a technology and innovation center
stakeholder analysis
project sponsors
Applied Digital
The sponsoring organizations bring complementary capabilities:
- Applied Digital: Strategic partner and stakeholder
operators and tenants
Primary Operators: Applied Digital
The operators manage day-to-day facility operations including power, cooling, security, and network management.
sources and references
- Applied Digital proposes multi-billion-dollar data center in South Dakota - Data Center Dynamics - https://www.datacenterdynamics.com/en/news/applied-digital-proposes-multi-billion-dollar-data-center-in-south-dakota/
- Potential $14 Billion Data Center Could Transform Deuel County’s Economy - KXLG - https://www.mykxlg.com/news/local/potential-14-billion-data-center-could-transform-deuel-countys-economy/article_2a031739-b2ae-4932-95f5-57e4f280b7c7.html
- Deuel County Commission hears proposal for multi-billion-dollar data center - Dakota News Now - https://www.dakotanewsnow.com/2025/04/17/deuel-county-commission-hears-proposal-multi-billion-dollar-data-center/
- New AI data center wave could transform rural South Dakota, advocates say - South Dakota Public Broadcasting - https://www.sdpb.org/business-economics/2025-05-27/new-ai-data-center-wave-could-transform-rural-south-dakota-advocates-say
- Company says data center could bring millions to state, Deuel County - South Dakota Public Broadcasting - https://www.sdpb.org/business-economics/2025-05-02/company-says-data-center-could-bring-millions-to-state-deuel-county
related pages
analysis current as of October 2025