Rapid City Data Center Backlash Prompts New Local Ordinance Amid EPA Air Permit Proposal

News Clip2:57KOTA Territory News·Rapid City, Meade County, SD·9/11/2026

A federal EPA proposal to eliminate public notice requirements for data center air permits is causing concern in South Dakota. In response, Rapid City leaders are drafting a new ordinance to ensure public input on future data center projects due to significant concerns about water and electricity usage.

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Gov: Environmental Protection Agency, Rapid City Council, U.S. Senator Mike Rounds

A new federal proposal by the Environmental Protection Agency (EPA), first reported by the Associated Press, could eliminate public notice requirements for data center air permits. This change would keep communities in the dark about the environmental impact of these energy-intensive facilities, which are essential for powering artificial intelligence.

In Rapid City, South Dakota, local leaders are drafting new rules to counter the potential EPA change and ensure community input. Rapid City Council President Stephen Tamang announced that a new ordinance will be introduced within the next month, mandating a public hearing and city council vote on all data center projects. Tamang expressed strong opposition to large-scale data centers in Rapid City, citing massive concerns over water and electricity usage, deeming them a "net negative" for the community from his standpoint.

While federal lawmakers, like U.S. Senator Mike Rounds, acknowledge the national security implications of keeping pace with China in the AI race, Rounds suggested that long-term solutions for energy-hungry data centers might involve space-based facilities. He believes that the vast majority of new data centers will eventually be based in space due to the immediate and permanent supply of solar power available there, which also simplifies cooling systems.