A data center company hopes to break ground soon on a new project in North Dakota, with promises of economic gains, but in addition to community-level pushback, the proposal faces questions about sustainability.

The firm behind the project, Applied Digital, wants to build a $3 billion data center just outside Fargo. Officials said it is needed to meet the surge in demand for storing digital data and it would add at least 200 jobs to the area.

Michael Graalum, clean energy field organizer for the Dakota Resource Council, questioned whether it is worth it to use land protected by the flood mitigation effort known as the Red River Diversion.

“Especially in Fargo, it’s just such a waste of land that we’ve worked so hard to make viable,” Graalum contended. “We’re just gonna throw it away for a data center, and it’s thoroughly frustrating.”

Data centers are under scrutiny over the immense water use required to keep internal servers cool. Developers have eyed cold-weather states to avoid such conflicts. Graalum is more worried about the data center boom being used to keep fossil fuel plants alive. The Harwood City Council this week advanced the project near Fargo, with residents citing concerns about noise and other issues.

Another vote on the local development is expected in October. Graalum argued if a town or city is taking a strong look at a data center plan, they should limit interest to those proposed by large, established companies like Microsoft or Amazon. He thinks too many players have come on the scene, predicting resources will be wasted once demand subsides.

“I think what we’re going to see here over the next few years is going to be a data center bust,” Graalum said. “A lot of these facilities are going to end up being abandoned.”

According to the group Data Center Watch, $64 billion in projects have been blocked or delayed amid local opposition around the country. However, some analysts downplay claims of an “overbuild” of the centers as community debates play out. Meanwhile, Applied Digital said North Dakota has abundant power resources, including renewables, to build sustainable digital infrastructure.