Data center debate prompts Sioux Falls City Council to plan public outreach
The Sioux Falls City Council’s Regulatory Oversight Committee plans three months of online and public-meeting outreach on potential regulations for large-scale data centers. The effort follows controversy over a proposed data center, a rezoning approved for Gemini Capital, and calls for a moratorium in parts of the Sioux Falls area.
The Sioux Falls City Council’s four-member Regulatory Oversight Committee plans to propose a public-outreach timeline for potential regulations governing large-scale data centers. Council President Rich Merkouris said residents will be able to provide input online and at public meetings over the next three months, including a joint hearing with the Lincoln County Commission at Carnegie Town Hall.
The debate intensified after California-based Gemini Capital sought rezoning for 164 acres in northeast Sioux Falls; the council approved the request 7-0, although no additional plans for the data center have been submitted. Residents and local groups have also pushed for a moratorium on new hyperscale data centers, while Mayor Christine Erickson has favored developing clear regulatory guardrails instead of imposing a blanket pause. Minnehaha County has created a task force to study the issue, and a state proposal to extend sales-tax credits for data center equipment was defeated in the South Dakota Legislature.