A recap of recent events and happenings in the administration of Gov. Armstrong and Lt. Gov. Strinden





The Scope
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*March 21, 2025*

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Ellendale
*Armstrong inspects Applied Digital expansion, housing project in Ellendale, signs backup power supply bill *

Gov. Kelly Armstrong joined state and local officials in inspecting the new Applied Digital data center expansion and a related housing project, both under construction in Ellendale. While there, Armstrong also signed legislation streamlining siting of on-site backup power generation at data centers and other businesses in North Dakota, ensuring they can continue to operate off-grid during emergency situations.

“Ellendale is a shining example of the public and private sectors working hand-in-hand to drive economic growth and meet workforce needs,” Armstrong said after inspecting the projects with Ellendale Mayor Don Flaherty, Dickey County Commission Chair Brandon Carlson, North Dakota Commerce Commissioner Chris Schilken, Bank of North Dakota (BND) President Don Morgan and officials from Applied Digital and Headwaters Development LLC. “The collaboration among the city, Applied Digital and Headwaters Development to develop this game-changing project, expand housing options and meet infrastructure needs with state support has been remarkable.”

Applied Digital continues to build out a high-performance computing (HPC) AI data center in Ellendale, having first completed a crypto mining facility in 2023. The current 380,000-square-foot HPC facility is expected to begin operations late this year and will be followed by two additional 900,000-square-foot expansions, representing a combined investment of $5 billion and hundreds of new jobs.

To attract and accommodate new workers for the expansion, Applied Digital is partnering with Headwaters Development and the Bank of North Dakota to build 20 news homes and a 38-unit apartment complex in Ellendale. It’s the first housing project to utilize the state’s Rural-Workforce Initiative to Support Housing (R-WISH) pilot program, which supports rural communities of 20,000 residents or less with construction of market rate housing for workforce when a company is locating or expanding its operations. Approved last June by the state Industrial Commission, the R-WISH program will utilize up to $10 million of BND capital to complement the work being done by the North Dakota Housing Finance Agency and the Housing Initiative Advisory Committee.

housing

In addition to the R-WISH program, Armstrong highlighted a proposed Commerce program to address housing needs through a public-private partnership structure called Housing for Opportunity, Mobility and Empowerment (HOME), which is moving through the legislative process. Senate Bill 2225 contains $45 million that would be used to leverage local and private sector matches, creating a $135 million investment that rural communities can tailor to fit their unique housing needs.

With the signing of HB 1539, on-site backup electric generation that exceeds 50 megawatts and is not connected to the power grid will no longer be subject to the North Dakota Public Service Commission’s Siting Act. This will allow data centers and other businesses to add on-site backup generation more easily with local approval while still complying with environmental protections. In testimony on the bill, Applied Digital, which also has a facility in Jamestown, said backup power generation will protect workers and equipment from unintentional harm caused by unexpected disconnection from the power grid and will allow the data center’s large load to operate off-grid in emergency situations, improving the reliability of the grid for other customers and the grid’s operators. The change in law will take effect Aug. 1.

hb 1539
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ICBM
Armstrong receives briefing on Sentinel program  to replace Minuteman ICBMs

The governor joined the Minot Chamber EDC and Task Force 21 Sentinel Briefing this week, led by Air Force Maj. Gen. Colin J. Connor, Director of Intercontinental Ballistic Missile (ICBM) Modernization, Site Activation Task Force. The briefing highlighted the Minot Air Force Base project replacing the Minuteman ICBMs with the Sentinel.

“Governor Armstrong, State Legislators, and the North Dakota Military Commission are truly making a difference as we all work together to make North Dakota the most military friendly state in the nation,” shared Brekka Kramer, president and CEO of Minot Area Chamber EDC and member of Task force 21. “The Sentinel project is a major milestone for North Dakota, as it brings both significant opportunities and responsibilities. It’s not just about modernizing our missile systems – it’s about strengthening our state’s position in national defense, and creating a robust, long-term economic impact for our great state. We are excited to see the changes and growth this project will bring and are committed to ensuring North Dakota is ready to support the mission.”

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*Armstrong statement on Grand Forks County leaders approving letter of intent to house DOCR residents*

Gov. Armstrong released the following statement after the Grand Forks County Commission approved a letter of intent to enter an agreement with the North Dakota Department of Corrections and Rehabilitation to provide custody and care of DOCR residents in unused space in the new expansion at the Grand Forks County Correctional Center.

“We appreciate the Commission’s unanimous vote expressing their interest to enter an agreement to house DOCR residents at the County Correctional Center,” Armstrong said. “This will be a win-win for both parties, with the state securing access to jail beds to relieve pressure on our overcrowded prisons and the county securing another source of revenue to service the debt on their recently completed yet underutilized jail facility.”

In his executive budget recommendation presented to the Legislature in January, Armstrong included funding for an agreement with Grand Forks County. County officials had initially reached out to the state with the idea. Terms of the agreement still must be finalized.

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oil and gas study
*Armstrong helps highlight study showing positive economic impact of oil and gas industry in ND*

The oil and gas industry in North Dakota remains a powerhouse for the state’s economy, accounting for more than $48.8 billion in gross business volume and over 63,000 jobs in 2023, according to a study highlighted by Gov. Armstrong, a researcher from North Dakota State University and industry officials.

“The oil and natural gas industry continues to be a major force in North Dakota’s economy, benefiting communities across our great state,” Armstrong said. “Taxes and royalties paid by the industry support state and local investments in infrastructure, schools, communities, tax relief and the Legacy Fund, among other areas.”

North Dakota State University researchers Dean Bangsund and Nancy Hodur studied the economic contribution of oil and gas exploration, extraction, transportation, processing and capital investments to the state in 2023, the most recent data available. Similar studies have been conducted every two years since 2005.

Their findings show that North Dakota’s oil and gas industry directly employed 30,100 people in 2023, while economic activity from the industry's indirect and induced effects supported an additional 33,730 jobs, for a total of 63,830 jobs attributed to the industry. Employment compensation, which includes wages, salaries and employee benefits, was estimated at $5 billion.

Total gross business volume, which includes direct sales in the oil and natural gas industry and business generated from indirect and induced economic activity throughout North Dakota, set an all-time high record at $48.8 billion – an increase of $6.2 billion over 2021 and over 30% of the state’s overall gross business volume.

“Nearly $49 billion is a huge number and shows how important this industry is to our state’s overall well-being,” said Bangsund, a research scientist in agribusiness and applied economics at NDSU.

Ron Ness, president of the North Dakota Petroleum Council, noted that North Dakota’s oil and natural gas industry pays more than half of all state taxes collected and provides over 63,000 good-paying jobs in the state.

“Thanks to our industry’s continued investment in technology, innovation, and infrastructure, oil and natural gas will continue to be a major force in North Dakota’s economy for generations to come,” Ness said.

According to another recent study conducted for the Western Dakota Energy Association (WDEA) and North Dakota Petroleum Foundation, tax revenues paid by North Dakota’s oil and natural gas industry from fiscal years 2008 to 2024 now exceed $32 billion. These revenues supported $5.9 billion for local communities and infrastructure, over $2.36 billion for K-12 education, $1.75 billion for water and flood control projects, and over $1.24 billion for property tax relief. Additionally, $8.5 billion in oil and gas taxes went into the Legacy Fund, which benefits future generations.

“The impact of the oil and natural gas industry can be seen throughout the state. From education funding to property tax relief to infrastructure funding, every county and community has and continues to benefit from this industry,” WDEA Executive Director Geoff Simon said.

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*Armstrong: Revised revenue forecast supports meaningful property tax relief, other priorities*

A revised state revenue forecast released supports significant investments in property tax relief and other priorities despite a downward adjustment in oil tax revenue, Gov. Armstrong said.

“North Dakota homeowners being squeezed by high property taxes are demanding property tax relief and reform, and this revenue forecast confirms that we can afford to deliver the meaningful relief they deserve,” Armstrong said. “Thanks to our conservative approach to budgeting, even with a projected dip in oil tax revenues, we can still fund tax relief and other priorities such as workforce, housing, education, health care and infrastructure to continue making our state the best place to live, work and raise a family.”

The revised forecast projects the 2025-27 biennium will bring in general fund revenues of $5.07 billion – a reduction of $105 million, or 2%, from the January 2025 executive forecast used to prepare Armstrong’s executive budget recommendation to the Legislature. Even with the change, the Armstrong executive budget would be projected to end the biennium with a $125 million positive ending fund balance.

The revised forecast continues to reflect a growing, diversified economy in North Dakota. General fund revenues in the 2025-27 biennium are expected to exceed the current 2023-25 biennium by $71.9 million, or 1.4%.

*Read the full release* [ [link removed] ]


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Wildfire burning in the evening near Glen Ullin, North Dakota

Photo courtesy of Kindred Fire Department

*Armstrong declares statewide fire emergency as drought conditions persist, wildfire risk remains high*

Gov. Armstrong signed an executive order [ [link removed] ] declaring a statewide fire emergency and activating the State Emergency Operations Plan as above average temperatures and below average precipitation continue to worsen drought conditions and increase the risk of wildfires.

“North Dakotans endured some of the largest, deadliest and most destructive wildfires in recent memory last year, and the actions being taken now will ensure we are fully prepared for another intense wildfire season,” said Armstrong, a former volunteer firefighter. “The state is committed to using every resource at our disposal to protect life and property in collaboration with our local and federal partners. Citizens can do their part by staying updated on fire conditions and taking precautions to prevent wildfires, because every fire that doesn’t start is a fire we don’t have to fight.”

Drought conditions and an early thaw are factors contributing to an earlier and longer-than-average spring fire season. Fires have already started throughout the state this spring and have proven active and difficult to suppress, including a fire March 9 near Menoken that burned approximately 1,200 acres and involved five fire departments.

Under the emergency declaration, all state agencies, including the North Dakota Department of Emergency Services, North Dakota Forest Service, and North Dakota National Guard, are ordered to maintain high levels of readiness to combat fires to save lives, homes and communities. The Forest Service has already begun staging resources in Dickinson and Bismarck to assist local fire departments.

This declaration allows the state to preposition resources for a rapid wildfire response given the high fire danger conditions that exist now and are expected to persist, and even worsen, through the spring until vegetation begins to green. The declaration is effective through May 31, unless extended.

North Dakotans can help prevent fires by taking the following actions: 


* Always “Learn Before You Burn” by checking with your local officials for the latest information on burn restrictions and viewing fire danger maps at gov/burn [ [link removed] ]. The governor’s declaration is not a fire restriction or ban.
* Burned brush piles can reignite with high winds, so careful monitoring of piles and sloughs is recommended, even if the fire appears to be out.
* Always stay off dry grass when driving a vehicle, as hot exhaust pipes can be a heat source for starting a wildfire.

North Dakotans are also encouraged to be “Ready, Set, Go!”

*Ready* – Be Prepared. Sign up for local alerts and follow local emergency management on social media. Create and practice an emergency plan.

*Set* – Be Alert. Prepare to evacuate. Evacuate early if you need more time or feel your life is in danger.

*Go!* – Evacuate Now. Do not hesitate. Bring your pets and emergency supply kit.

Wildfires last October burned over 120,000 acres in North Dakota, including a fire near Ray that resulted in two fatalities. The state’s request for a presidential major disaster declaration [ [link removed] ] was granted in December for Williams and McKenzie counties.

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*IN OTHER NEWS*

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hockey

Gov. Armstrong and Lt. Gov. Strinden had the honor of dropping the puck at the University of North Dakota men's hockey game on Friday, March 7. Strinden's son Ben, #21, joined them for the ceremonial face-off.

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Governor's Band/Orchestra Program and Choral Program applications are now open for school, community and church bands, orchestras and choirs across North Dakota. Apply here [ [link removed] ].



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Gov. Armstrong and the team of Statewide Elected Officials won the Capitol Classic Shootout. The event helps raise money and awareness for Special Olympics North Dakota and set an event fundraising record of more than $24,000. 

capitol classic

health group ________________________________________________________________________

Lt. Gov. Michelle Strinden met with the Multi-Partner Health Collaborative Working Group to discuss the important work the state is doing to make North Dakota the healthiest state in the nation.



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Gov. Armstrong proclaimed March as Red Cross Month, acknowledging the work of countless individuals, predominantly volunteers, who are devoted to assisting North Dakota communities in times of need.

red cross

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UMary

Gov. Armstrong met with the University of Mary wrestling team in his office at the Capitol. Armstrong congratulated NCAA DII National Champion Reece Barnhardt and four other UMary wrestlers who attended Nationals, a new program record.

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