Pros and Cons of Data Centers Discussed

Dr. Kate Stoll, a project director at the American Association for the Advancement of Science, Center for Scientific Evidence in Public Issues, provided an overview of the benefits and concerns surrounding data centers. She noted that while data centers create jobs, many are temporary. Key concerns often revolve around water and power consumption, though health concerns, apart from diesel generators, are generally minimal nationwide. In South Dakota, lawmakers recently rejected proposals aimed at incentivizing large data center construction. Concurrently, the governor signed new legislation into law that imposes significant limits on the industry. This new law applies to data centers with a peak electrical demand of 10 megawatts or greater, requiring them to ensure their water usage does not strain local resources and to bear the costs of necessary electrical infrastructure. Additionally, the law prevents the state from overriding local ordinances that limit, prohibit, or regulate data centers. Another bill signed by Governor Kristi Noem empowers the state Public Utilities Commission to charge data center companies for the regulatory review costs associated with their projects, further establishing a framework for oversight and accountability.