Aberdeen council considers longer data center pause and tougher rules
Aberdeen, S.D., Deputy Mayor Alan Johnson proposed extending the city's data center permit moratorium until June 1, 2027, to allow more time to address housing, water, and electrical service concerns. City Attorney Ron Wager also outlined potential ordinances to remove sales tax refunds for data centers and establish city-wide regulations, including a firm stance against non-disclosure agreements for city officials.
Aberdeen, S.D. — Deputy Mayor Alan Johnson has suggested extending the city's data center permit moratorium until approximately June 1, 2027, to allow the City Council more time to develop comprehensive regulations for future data center projects.
The current moratorium is set to expire on November 18. Johnson's proposal, made during the September 21 City Council meeting, aims to provide sufficient time to address potential strains on housing, water, and electrical services that large-scale data centers could impose. The council has not yet officially adopted this extension.
City Attorney Ron Wager informed council members that existing ordinances are inadequate for regulating data centers. He also emphasized that the city government is incompatible with nondisclosure agreements, stating that no city official or employee should sign one. Wager outlined two potential ordinances: one would eliminate data centers' eligibility for a city sales tax refund, and the other would establish the city's overall regulatory framework for these facilities.
Council members also discussed various other proposals for the draft ordinances. Councilman Chad Nilson suggested extending the city's zoning jurisdiction a mile beyond its limits to prevent developers from circumventing city regulations. Councilman Rob Ronayne advocated for strong accountability measures, including the city's power to halt data center operations for non-compliance. Other concerns raised by council members included worker housing, advance disclosure of electricity use, noise limits, and rules adaptable to evolving cooling technologies. Staff are expected to present alternative draft ordinances on September 28.