Building Business: Why Midco is Ready to Help Big Tech Go Beyond in North Dakota

As a telecommunications provider focused on moving technology forward, Midco is constantly engaged with local, state and federal governments to know about programs and services being offered to promote economic development in states. In North Dakota, tax regulatory changes are incentivizing business expansion, specifically for those in the data center and tech industry. These changes, along with the overall environment of the state, are noteworthy because of the impact they can have on the future of technology. 

Location, Location, Location 

Technology companies are feeling the pressure to meet consumers’ ever-expanding demand for data, requiring hyperscalers, wholesalers and other enterprise businesses, to assess new locations to store this explosion of new data. 
 
Hyperscalers are large cloud service providers offering amenities such as computing and storage at an enterprise scale.¹ These providers build massive data centers and rapidly gauge their infrastructure to accommodate largescale workloads with streamlined network connectivity and low latency to optimize the growing demands of their users relative to the demand placed on the system.² 
 
While it’s clear the need for more data centers is growing, where to build or relocate them is another conversation. Finding a state that welcomes economic growth, prioritizes recruiting businesses to the area and is open to progress are key first steps. But a new business won’t get very far if the network infrastructure of the state is unable to support the growing business landscape. A reliable connection is a top priority for tech companies because without it, they’ll be out of business. Having access to a network provider that’s focused on the future of data demands, speeds and latency is crucial in making business endeavors successful. It is even better if the network is provider owned, as this provides more stability and confidence in who is actually managing your connection and most importantly, your data.  
 
Andrew Curley, Midco Senior Director of Government Relations, is well versed in economic growth for states and has been tracking policy in North Dakota for several significant reasons. Curley explained, “The recent regulation changes in North Dakota are very promising. Having a state that is technology-progressive is important not only for the residents, but also the overall environment for economic development.” 

Why North Dakota is the Right Location 

With its abundance of natural resources, lack of extreme weather and a drive for innovation and business expansion with a focus on fiber connectivity, North Dakota is primed to be the next hotspot for tech leaders. 
 
According to the North Dakota Department of Commerce, it’s one of the lowest-cost states for operating a business. For those looking to expand or invest in future North Dakota businesses, the state also offers a variety of resources and programs.³ 
 
U.S. News and World Report lists North Dakota as the #15 best overall state, while also ranking high in several important categories contributing to the overall vitality of the state⁴: 

• #1 in Infrastructure: This evaluates the quality of life for residents and considers metrics such as a state’s quality of roads, use of renewable energy and access to high-speed internet.⁴
• #2 in Fiscal Stability: This ranking encompasses the success of government-sponsored programs and projects, reflecting short- and long-term fiscal stability of a state.⁴
• #6 in Opportunity: This metric comprises of a state’s overall economic opportunity, affordability and equality.⁴ 

North Dakota Tax Incentives 

North Dakota recently created several tax incentives for developers to aid in the state’s business expansion. 

• Sales Tax Exemption for IT Equipment: Owners, operators and tenants of a qualified data center may be granted a sales tax exemption on information technology equipment and computer software, including replacement equipment and software, purchased after December 31, 2020. To qualify, a data center must be a newly constructed or substantially refurbished facility located in North Dakota of at least 15,000 square feet of which 50% is used for data processing.⁵
• Property Tax Exemption: A North Dakota business project may qualify for a property tax exemption for up to five years.⁵
• Income Tax Credit: An income tax credit is available to individuals who set up a North Dakota angel fund for the purpose of pooling their monies to make qualified investments in qualified businesses.⁵ 

For more information on these tax incentives, contact the North Dakota Office of State Tax Commissioner, and be sure to seek counsel from a certified lawyer, accountant and tax professional.  

“North Dakota has a welcoming political and regulatory environment,” shared Curley. Most importantly, they have political leaders who are open to business. We’re excited to continue partnering with the state to see what new opportunities are on the horizon.”

Midco Taking Big Tech Beyond in North Dakota 

Midco’s roots in North Dakota date back almost 30 years ago, when we first brought cable TV to Bismark and Mandan. Since then, we’ve connected the state with fiber and launched DOCSIS 3.1 technology, and maybe DOCSIS 4.0 someday soon! Today, Midco has 600 team members in North Dakota proudly bringing high bandwidth and low latency connectivity across the entire state, integrated with our industry-leading technology knowledge and capabilities.  
 
Since 2021, Midco has been upgrading and expanding all of our fiber networks across the region. In North Dakota, we have over 2,200 miles of fiber in Bismark and almost 3,500 in Fargo. Midco proudly owns and operates the mileage which decreases latency and improves performance. Being a fiber network owner that offers low latency of < 20 milliseconds from Spearfish, SD, to Chicago, and a network that’s MEF 3.0 Certified, sets us apart from our competitors.  
 
We understand that business needs can vary and evolve throughout the lifetime of an organization. That’s why we’ve heavily invested in our business network to enhance the experience for our enterprise and wholesale customers. Since 2023, $8 million in upgrades have been completed to our transport network.  
 
For any business, especially tech companies and data centers, their core operating system depends on a reliable network connection. To function optimally, businesses need a network that can handle massive amounts of traffic and data while maintaining scalability and peak performance. They also need a network connection with fast, symmetrical speeds, low latency, extreme computing capabilities, high bandwidth and networking options. Thanks to Midco’s recent fiber upgrades and our owned fiber network, all these amenities are available to businesses in North Dakota. 
 
While land, resources and programs are needed to build a business, an excellent connection is needed to make a business function with the world around it. Midco has a vested interest in ensuring the technology needs of the future are proactively being met to help our customers and communities go beyond.