Opinion: South Dakota’s tech future depends on powering next wave of innovation
An opinion piece argues that South Dakota must prioritize building and powering data center infrastructure to secure its economic future and competitiveness in artificial intelligence. The author, CEO of Oahe Electric Cooperative, emphasizes the state's advantages in affordable energy and land but warns that decisive policy action is needed. The article advocates for thoughtful policy and modernized permitting to attract data center development and ensure grid upgrades are financed responsibly.
Jordan Lamb, CEO of Oahe Electric Cooperative, penned an opinion piece for the Mitchell Republic, asserting that South Dakota's future global economic leadership hinges on its ability to develop critical data center infrastructure for artificial intelligence. Lamb highlights the intense competition with countries like China in AI development, stressing that reliable power and data centers are fundamental to innovation and job creation.
The article underscores South Dakota's inherent advantages, including affordable energy, ample land, and a robust workforce, which have contributed to a 17 percent growth in tech employment. Lamb argues that these factors create an ideal environment for establishing data center facilities capable of global competition. However, he warns that these advantages alone are insufficient and calls for decisive action through thoughtful policy and modernized permitting to capitalize on this finite opportunity.
Lamb points to the economic benefits, citing Big Watt's annual contribution of $900,000 in kilowatt-hour taxes to local schools, with potential for $160 million annually from future phases, along with several million dollars in local payroll. He notes that data center construction also supports hundreds of skilled trades jobs, which could be transformative for rural communities. The CEO emphasizes Oahe Electric Cooperative's commitment to grid upgrades and affordability, advocating for data centers to cover their upfront onboarding costs to prevent existing consumers from subsidizing new large-scale load. He concludes that proactive policies are essential to position South Dakota as a leader in powering America's AI future.