Key Takeaways
- • Harwood, North Dakota, a town of about 940 people 10 miles from Fargo, voted against a ballot measure that would have limited large-scale industrial developments such as data centers, with about 75% (325 of 430 votes cast) opposing it.
- • Harwood was the only one of 45 data center ballot measures in the 2026 midterms to go the pro-data center way, according to data from Redbud Consulting.
- • Applied Digital Corp. is overseeing a 160-acre data center in Harwood with Oracle as the end-user, scheduled to be fully operational next year and possibly expanding to 900 acres.
- • Opponents cited tax benefits: Mayor Blake Hankey said the data center would bring in $1.65 million in taxes by 2028, and officials feared the measure could prompt Applied Digital to de-annex the project.
- • Organizer Michael Swartz attributed the defeat to affordability concerns and said voters who did not read the ballot language closely may have misunderstood the measure.
Summary
In a midterm election marked by widespread voter opposition to data centers, Harwood, North Dakota, defied the trend. According to data from Redbud Consulting, only one of 45 ballot measures on data centers this election cycle went in favor of the industry, and Harwood's result was the lone pro-data center outcome. Residents of the town, about 10 miles from Fargo and home to roughly 940 people, rejected by about 75% a Home Rule Charter amendment that would have imposed requirements on how the city evaluates, approves and administers large-scale industrial projects, including independent reviews and public hearings.
The measure grew out of local anger over a 160-acre data center that Applied Digital Corp. is overseeing, with Oracle as the end-user. According to Fortune, residents learned of the construction only about three weeks before work began in September 2025, and Fargo Forum reporting said then-Fargo Mayor Tim Mahoney and Harwood Mayor Blake Hankey had both signed nondisclosure agreements with Applied Digital in July. The project could potentially expand to 900 acres.
Michael Swartz, a senior software developer who has lived in Harwood for nearly 20 years, led the grassroots group Voices of Harwood, which drafted the amendment. Swartz cited noise concerns, given an elementary school within about a mile of the campus, and long-term implications he said had not been adequately vetted. The petition received 91 signatures in three days in August, more than twice the 40 required. Swartz said the Fargo Moorhead West Fargo Chamber of Commerce later circulated materials opposing the measure, including claims of $300,000 to $544,000 in added taxpayer costs. Cale Dunwoody, the chamber's vice president for public policy, said the body worked to give voters accurate information. Swartz also said the ballot language differed significantly from what the group had presented to the election committee.
Town officials, including Mayor Hankey, opposed the measure, arguing it would add administrative burden and set a precedent requiring public votes on every town issue. Councilman Chris Higgins feared Applied Digital could de-annex the project, forfeiting tax benefits. Hankey did not respond to Fortune's requests for comment. Applied Digital's executive vice president of external affairs, Nick Phillips, said the company chose Harwood for its cooler climate, energy access and pro-business environment, and said the company holds town halls and public forums beyond legal requirements.
Swartz attributed the outcome primarily to affordability. Citing Pew Research Center findings that half of Americans expect data centers to negatively affect energy costs, he said the prospect of lost tax revenue weighed more heavily locally. "We live in a climate right now where money is tight," he said.
The measure grew out of local anger over a 160-acre data center that Applied Digital Corp. is overseeing, with Oracle as the end-user. According to Fortune, residents learned of the construction only about three weeks before work began in September 2025, and Fargo Forum reporting said then-Fargo Mayor Tim Mahoney and Harwood Mayor Blake Hankey had both signed nondisclosure agreements with Applied Digital in July. The project could potentially expand to 900 acres.
Michael Swartz, a senior software developer who has lived in Harwood for nearly 20 years, led the grassroots group Voices of Harwood, which drafted the amendment. Swartz cited noise concerns, given an elementary school within about a mile of the campus, and long-term implications he said had not been adequately vetted. The petition received 91 signatures in three days in August, more than twice the 40 required. Swartz said the Fargo Moorhead West Fargo Chamber of Commerce later circulated materials opposing the measure, including claims of $300,000 to $544,000 in added taxpayer costs. Cale Dunwoody, the chamber's vice president for public policy, said the body worked to give voters accurate information. Swartz also said the ballot language differed significantly from what the group had presented to the election committee.
Town officials, including Mayor Hankey, opposed the measure, arguing it would add administrative burden and set a precedent requiring public votes on every town issue. Councilman Chris Higgins feared Applied Digital could de-annex the project, forfeiting tax benefits. Hankey did not respond to Fortune's requests for comment. Applied Digital's executive vice president of external affairs, Nick Phillips, said the company chose Harwood for its cooler climate, energy access and pro-business environment, and said the company holds town halls and public forums beyond legal requirements.
Swartz attributed the outcome primarily to affordability. Citing Pew Research Center findings that half of Americans expect data centers to negatively affect energy costs, he said the prospect of lost tax revenue weighed more heavily locally. "We live in a climate right now where money is tight," he said.
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