MDU wins state approval to serve Leola Data Center

News Clip0:40KELOLAND News·Leola, Macpherson County, SD·9/9/2026

Montana-Dakota Utilities (MDU) received state approval from the South Dakota Public Utilities Commission to provide electricity for a proposed data center in Macpherson County. The data center developer still needs a conditional use permit from the Macpherson County Board of Adjustment before construction can begin.

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Gov: South Dakota Public Utilities Commission, Macpherson County Board of Adjustment

The South Dakota Public Utilities Commission (PUC) has approved a request from Montana-Dakota Utilities (MDU) to provide electricity for a proposed data center in Macpherson County. This approval was necessary because the planned Leola data center is located within the service territory designated for Ipswich-based FVL Electric.

Despite this approval for utility service, the data center's developer still faces a critical step before construction can commence. They require a conditional use permit from the Macpherson County Board of Adjustment. Capitol Bureau reporter Bob Mercer provided further details on the development.