Story
Nov 8, 2026

Harwood Chose Data Center Tax Revenue Over Tighter Public Scrutiny

Harwood’s vote exposed a divide between residents demanding a meaningful say over a data center that arrived with startling speed and town leaders who saw stricter rules as a financial threat to a community seeking growth.

Harwood, North Dakota, became an outlier in a national backlash against data centers after voters rejected a measure that would have required tougher review of large future developments. The tally was decisive: 325 votes against and 105 in favor, making the town the only pro-data-center result among 45 related ballot measures tracked nationally.

The dispute began with Applied Digital’s 160-acre AI data-center project, built for Oracle as end user. Residents said they learned of it only weeks before construction began in September 2025; Mayor Blake Hankey and then-Fargo Mayor Tim Mahoney had signed nondisclosure agreements with the developer months earlier. For opponents, that speed was the point. Advocate Mike Swartz said residents had been “blindsided,” while his wife, Amanda, said, “People deserve a say in projects of this scope.”

Swartz and the grassroots group Voices of Harwood responded with a proposed Home Rule Charter amendment. It would not have stopped the project already underway, but would have required independent assessments and public hearings for future developments meeting a high threshold of scale. Backers worried about noise near an elementary school, as well as the precedent set by a campus that could eventually grow to 900 acres.

Town leaders cast the proposal differently. Hankey said its language reached beyond data centers to any sufficiently large business and that its requirements “would have been financially burdensome to a city our size.” He defended signing the NDA, arguing Harwood would otherwise have lost the project—and its tax proceeds—to Fargo.

That economic argument carried the day. Officials projected $1.65 million in data-center taxes by 2028, while opponents of the amendment warned of added municipal costs and lost development. Swartz said squeezed household budgets made voters wary of anything that might raise assessments. Harwood did not settle its argument over the data center; it chose, for now, the promise of revenue over stronger public control.