NOVEMBER 2025
CEO’S MESSAGE
THE IMPACT OF AI DATA CENTERS AI or “hyperscale” data centers are making headlines in North Dakota and for good reason. These massive facilities don’t just power artificial intelligence, they reshape connectivity and create ripple effects for businesses and communities statewide. In our last issue of Connections, we discussed the different types of data centers, including their needs for space, power, and cooling. But what are their connectivity needs and how could that impact businesses in North Dakota? Seth Arndorfer, CEO
Earlier this year I was drawn for a bull elk tag in Wyoming, just a year after getting a oncein-a-lifetime moose tag in North Dakota. I’ve hunted my whole life but have to admit that these tags made me giddy. I know not everyone gets opportunities like these, and I wanted to make the most of them. A successful hunt takes patience, good scouting, an understanding of the animal’s behavior, and the help of others. There were many, many people – family, friends, friends of friends – who played a role in these hunting experiences and very few of them were out in the field with me. I see similarities between these hunts and the broadband “game.” • Patience in the hunt begins as you wait to be drawn for a tag and extends all the way through the hunt. In broadband, patience often means waiting for new technology to develop or for the ground to thaw so new fiber optics can be laid. • Scouting helps set you up for a successful hunt but doesn’t guarantee it. The same goes for research and preparation in our industry. Doing the groundwork ensures that when opportunity knocks, you’re ready to act. continued on pg. 2
Let’s start with some background on connectivity in our state. As you’ve probably heard DCN say, historically, DCN and our Owner companies have collectively invested $100 million a year to extend the fiber optic infrastructure into every corner of North Dakota. That investment is critical because it’s already in place so we can leverage it to meet the next wave of bandwidth needs. Remember when 1 gig was big news? Then it was 10 gig. It didn’t take long for that to grow exponentially and now we’re taking about hundreds – plural – of gigs. In fact, DCN is turning up our first 400 gig connection between North Dakota and Minneapolis where hyperscalers need to connect. DCN has the ability to sell and install multiple 400 gig wavelengths to Minneapolis as well as other major data center markets like Omaha, Denver, Cheyenne, and Seattle. For AI data centers, there are two big issues: latency and capacity. Latency must be low – under six milliseconds – and capacity must be high, 100+ terabits per second. Being able to fill these enormous demands has a positive trickledown effect for everyone. Whether it’s at your business or at home, your connected experience is going to improve because the performance of your broadband will be better. What does this mean for you? You may be thinking, “Oh really? Well there’s no data center near me so why should I care?” Or maybe you are near a data center and are wondering how this will impact your business. Both are reasonable questions. From a connectivity perspective, these data centers and the broadband infrastructure needed to support them is a major continued on pg. 2