America faces a fundamental obstacle: energy availability. Yet, the solution lies in the heart of the Northern Plains.
For more than 75 years, North Dakota has been recognized as an energy powerhouse—consistently ranking among the top three oil-producing states in the nation. Today, the state is undergoing a transformation—emerging as a strategic energy hub built around abundant, affordable natural gas, expanding infrastructure, nation-leading carbon storage resources and business-friendly regulatory environment. Together, these advantages are creating an energy platform that appeals to high-growth industries: data centers and AI compute, and advanced manufacturing such as ag-tech, clean hydrogen, food processing, critical mineral operations and petrochemicals.
These sectors are fueling billions of dollars in new investments and positioning North Dakota as one of the most promising industrial hubs in the country.
“Companies across the country are searching for reliable, affordable energy, and we are building the infrastructure and policy framework they need to compete and grow,” said Governor Kelly Armstrong. “We’re committed to powering the next industrial frontier.”
Recognized by CNBC as the nation’s most business-friendly state, North Dakota has built a long track record of encouraging investment and innovatio
A Global Race Demands a Strong Domestic Energy Platform
Across the globe, countries are racing to lead in fast-emerging strategic industries. However, most of these industries require vast amounts of affordable, dependable energy, making energy availability a defining competitive advantage for the U.S. This is where North Dakota stands apart.
Today, North Dakota’s natural gas export pipelines are operating at capacity. As wells mature, the gas-to-oil ratio continues to increase, generating more natural gas than the current infrastructure can handle. Ongoing exploration and new well development are adding even more volume. This growing surplus makes it a priority for the state to pursue value-added opportunities that put its abundant natural gas supply to productive use.
Building the Backbone: Infrastructure for Growth
Recognizing this opportunity, North Dakota is investing heavily in its energy and natural gas infrastructure. The state is expanding its pipeline network to utilize natural gas in state and open the door for new industrial development, creating more attractive conditions for business investment and site selection.
North Dakota is advancing a statewide natural gas pipeline that will connect the resource-rich western region to the growing industrial centers in the east. Led by WBI Energy, the pipeline aims to transport up to one billion cubic feet of natural gas per day. The project is set to begin construction in the second half of 2028. Service for phase one, between McKenzie County and Washburn, is set to begin by late 2029. Phase two, from Washburn to Mapleton near Fargo, should finish by late 2030.
Minot Positioned for Growth with New Natural Gas Pipeline
WBI Energy is developing plans to build the Minot Industrial Pipeline, a key infrastructure project designed to deliver Bakken natural gas from Tioga to industrial customers in Minot. The pipeline’s sizing is currently under evaluation and will be tailored to meet the specific needs of industrial users.
Additionally, North Dakota offers unmatched geology for permanent CO2 storage, making it one of the few places in the U.S. where companies can reliably produce low-carbon, low-cost industrial energy. With three active CO2 storage projects and more in development, the state is leading in this space. It is also one of only four states with permitting primacy, allowing for timely approval of CO2 sequestration wells.
“North Dakota’s proactive efforts in primacy, policy, and geology allow the state to develop CO2 sequestration wells more quickly than anywhere else,” said Commerce Economic Development & Finance Director Rich Garman.
Case Studies: Energy Platform for the Future
Here are three examples that illustrate the state’s growing role as a hub for innovation in high-growth sectors:
AI/Data Centers: Applied Digital
Data centers are rapidly expanding in North Dakota. Applied Digital’s Ellendale campus, which opened in 2025, stands as the largest single-site investment in state history at over $20 billion. The company continues to grow its presence throughout the state.
Iron Ore Processing: North American Iron
North American Iron is planning to develop a pig iron facility on a 730-acre site in Minot, marking a first for the U.S. The facility will create about 650 jobs and aims to strengthen the domestic steel supply chain, reducing dependence on imports from countries like Russia and Brazil. The facility construction will begin in 2026 and be operational in 2029.
“North Dakota has been an excellent partner in moving this project forward,” said North American Iron, Founder & CEO Jim Bougalis. “The state’s energy strategy, robust infrastructure, and commitment to innovation provide the foundation we need to restore large-scale domestic iron processing in the U.S. By reclaiming legacy ore resources in Minnesota and processing in North Dakota, we’ll create hundreds of U.S. jobs, contribute billions to the economy and strengthen the domestic steel supply chain for generations to come.”
Critical Minerals: Talon Metals and Packet Digital
North Dakota’s natural gas is helping drive growth in the critical minerals sector from extraction to processing minerals. Talon Metals is converting a former coal mine in Beulah into a nickel processing plant, set to open in 2028 and create up to 150 jobs, with Tesla contracting for half its output—reducing U.S. reliance on imported minerals for electronics and electric vehicles.
In Fargo, Packet Digital has secured up to $50 million in federal funding to expand battery manufacturing for unmanned military systems. Adding to this momentum, Liberty Stream is developing a process to extract lithium from produced water from oil and gas wells. This domestically sourced lithium is under memorandum of understanding to be used by Packet Digital for battery production.
A New Era of Industrial Possibility
By harnessing its natural gas advantage, expanding infrastructure, and leveraging its business-friendly regulatory environment, North Dakota has positioned itself at the crossroads of America’s industrial future.
This shift is attracting billion-dollar commitments, fueling job creation, and reshaping economic opportunities for communities statewide. As the nation races to compete on the global stage, North Dakota is ready to deliver.
“Investors are looking for more than incentives, they want confidence,” said Commerce Commissioner Chris Schilken. “North Dakota’s natural gas advantage, paired with strategic infrastructure and policy alignment, is turning that confidence into capital.”
For more information about locating or expanding in North Dakota, visit https://www.commerce.nd.gov/.
