A former blockchain mining company that pivoted to AI is keeping its latest data center construction under wraps. Applied Digital, formerly known as Applied Blockchain, announced that it has broken ground on a 430 MW facility somewhere in the Southern United States, although The Register reports that it is yet to publicly reveal its location. The CEO claims that it’s doing this to protect the small town in which it’s located, especially as he deems that they’re not ready for “national media attention.”
“We’re not trying to hide anything,” Applied Digital chief Wes Cummins told the publication. “You go to some of these small locations… It’s not like these towns have really sophisticated public communications departments with people that handle all of this. It’s really a sensitivity for them, not for us.” Nevertheless, the company intends to name the data center’s location by February this year. “The public is going to find out everything about it. It’s not being done to stop the public from finding out about it at all,” he added. “We’ve changed our approach with these locations themselves… When you’re dealing in towns of hundreds of people, sometimes that’s a bit overwhelming.”
The company is no stranger to controversy, especially as its projects in Harwood, North Dakota, and Ellendale, Colorado, have all been met with some controversy in the past. Furthermore, data centers have recently been garnering negative attention due to the amount of electricity they’ve been consuming, pushing prices for everyone else, especially consumers and small businesses. Residents have reported spikes in their electricity bill by up to 36%, while wholesale electricity prices have soared up to 267% over the past five years.
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These massive cost increases have caught the attention of lawmakers from across the spectrum. Elizabeth Warren, and two other Democrat senators have called on big AI tech companies to explain their energy consumption, while Bernie Sanders, an independent, is calling for a moratorium on all AI data center construction. Even U.S. President Donald Trump told AI tech companies to “pay their own way” and said that major changes are going to happen to ensure that Americans don’t “pick up the tab” for data centers.
Soon after these announcements, Microsoft released its 5-point community-first framework, where it promises to “be a good neighbor” to the communities around its data centers. OpenAI has also followed suit, committing to fund grid updates to reduce stress on the energy supply. However, we’re unsure if other big AI tech companies and hyperscalers will also make announcements in the near future, or if this initiative will only be limited to the two companies.
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