South Dakota PUC approves power provider for Leola data center; county permit still pending

South Dakota PUC approves power provider for Leola data center; county permit still pending

News ClipSDPB·Leola, McPherson County, SD·9/9/2026

A proposed crypto currency mining data center in Leola, South Dakota, has secured Montana-Dakota Utilities as its electrical provider with approval from the state Public Utilities Commission. However, the project still requires a conditional use permit from McPherson County, which recently deferred action. Political candidates are also advocating for a statewide moratorium on data center projects.

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Gov: South Dakota Public Utilities Commission, McPherson County

A proposed cryptocurrency mining data center in Leola, South Dakota, has identified Montana-Dakota Utilities (MDU) as its electrical supplier. The state Public Utilities Commission (PUC) approved MDU to provide power, despite FEM Electric typically servicing the area, following a settlement agreement. Leola Data Center, represented by lawyer Bill Van Camp, acknowledges the need for additional permits from McPherson County for construction, where a conditional use permit was recently deferred.

PUC Chairman Chris Nelson clarified that the commission's approval does not constitute a construction permit for the data center, as that jurisdiction lies with the county. The project is expected to span nine acres and consume 50 megawatts of energy, with a key component being funding for EMS and first responders. This development occurs amidst calls from political candidates, particularly Democrats, for a statewide moratorium on data center projects due to increasing pushback nationwide.