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XYZ Reality expands partnership with applied digital for AI factory developments

XYZ Reality partners with Applied Digital to support construction delivery for AI Factory campuses in North Dakota, aiming to address operational challenges across 600MW capacity.

  • Saturday, 17th January 2026 Posted 2 months ago in by Sophie Milburn

XYZ Reality has announced the expansion of its partnership with Applied Digital, aimed at strengthening construction delivery for two AI Factory campuses in North Dakota: Polaris Forge 1 in Ellendale and Polaris Forge 2 near Harwood.

Together, these projects represent 450MW of IT load spread across three hyperscale buildings. This expansion marks an increase in XYZ Reality’s involvement in the region and brings the total capacity under their support to 600MW across Applied Digital’s North Dakota portfolio, with expectations for further growth as more campuses progress through development stages.

The AI Factory model by Applied Digital situates high-density compute facilities in regions like North Dakota, where available power and naturally cooler climates help reduce cooling demands. These factors make it a suitable location for large-scale artificial intelligence (AI) and high-performance computing (HPC) infrastructure.

However, the region also poses unique delivery challenges, including remote access and limited workforce availability. XYZ Reality’s platform aims to support progress tracking, quality validation, and risk forecasting, helping projects to be managed more effectively.

David Mitchell, Founder & CEO of XYZ Reality, highlighted the potential in combining disciplined construction oversight with real-time data. He emphasises, "Ellendale proved what’s possible when you combine disciplined construction oversight with real-time data. The opportunity to replicate that precision across Polaris Forge creates a scalable delivery framework."

Brad Barton, Vice President of Construction at Applied Digital, acknowledged the support provided by XYZ Reality, noting its role in enabling collaboration within teams with its real-time quality-check features. Barton stated that such collaboration is important as AI Factory developments expand, ensuring projects are aligned during construction rather than post-completion.

This expanded partnership is set to create a unified delivery model across Applied Digital’s North Dakota portfolio, supporting the company’s ongoing work on developing a framework for AI and HPC campuses

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