Rhoden discusses taxes, data centers during Mitchell visit
South Dakota Gov. Larry Rhoden discussed data center development, electricity costs and water use during a Mitchell Rotary Club meeting. He said the state will evaluate facilities as economic development projects while requiring reliable power plans, protection for utility customers and reviews of water use.
South Dakota Gov. Larry Rhoden told the Mitchell Rotary Club that his administration will evaluate data centers as economic development projects rather than automatically supporting or opposing them. He said developers must demonstrate access to reliable electricity and ensure large facilities do not shift costs to existing utility customers.
Rhoden also highlighted closed-loop cooling systems and 2026 state requirements covering separate electricity-service terms, utility-cost responsibility and water-use reviews. The law preserves local governments’ authority to regulate data center development, while the governor described South Dakota’s diverse energy production as an advantage as computing demand grows.