South Dakota drought strains power grid as Rapid City data center moves forward
A new 15-megawatt data center by Sequitor Edge is planned for Rapid City, South Dakota, amidst a significant drought straining the regional power grid. Black Hills Energy, the utility provider, states it has the capacity to meet the increased demand, citing its experience with other large data center customers and its long-term planning. Sequitor Edge claims its facility will be highly energy-efficient.
Rapid City, S.D. is preparing for the construction of a new 15-megawatt data center by Sequitor Edge at the Black Hills Industrial Center, even as over half of South Dakota experiences drought conditions and temperatures are well above normal, putting strain on the regional power grid.
Black Hills Energy spokesperson Wes Ashton assured the public that the utility is equipped to handle the anticipated surge in demand from both increased summer loads and new facilities. Ashton noted the utility's decades-long planning for generation needs and mentioned their existing capacity to power large customers, including Meta's data center in Cheyenne.
Victoria Blatchford of Sequitor Edge highlighted the planned facility's energy efficiency, claiming a Power Usage Effectiveness (PUE) rating of 1.3, which is significantly better than the industry average of 1.8 to 2. Blatchford stated the facility is designed to be a responsible energy partner with minute-by-minute usage reporting. Construction on the Sequitor Edge facility is slated to commence in late 2026.