Data center regulations discussed in Minnehaha County, South Dakota

News Clip2:15KELOLAND News·Minnehaha County, SD·8/21/2026

Minnehaha County, South Dakota, is discussing proposed regulations for data centers, focusing on issues like noise, water usage, and potential impacts on utility costs. These regulations aim to balance economic benefits with community and environmental concerns. A meeting for the Minnehaha County Planning Commission to discuss these proposed regulations is scheduled.

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Gov: Minnehaha County, Minnehaha County Planning Commission, South Dakota, City of Sioux Falls, Lincoln County

Minnehaha County, South Dakota, is preparing to discuss a set of proposed regulations concerning data centers. This discussion follows a statewide effort, with Senate Bill 135 being signed into law this year, aimed at protecting South Dakota residents from increased utility costs and shortages linked to data centers. Local communities such as Aberdeen and Vermillion have also been exploring data center ordinances, while a data center is reportedly proposed for Sioux Falls, which is located in Minnehaha County, and Lincoln County is also showing jurisdictional interest.

The Minnehaha County Planning Commission is scheduled to review these regulations, which include measures for lighting, power, water, and noise mitigation. Specifically, a cap of 55 decibels on noise and provisions to prevent the draining of local groundwater are among the proposed rules. Devon Shaffer, a research fellow with the Dakota Institute, noted that while data centers can offer economic benefits like capital spending and property tax revenue, concerns persist regarding their zoning, power, and water demands.

Shaffer also highlighted that public anxieties often conflate data center development with broader fears about artificial intelligence and potential job displacement. He emphasized the importance of evaluating each data center project on a case-by-case basis, weighing the economic benefits against the environmental and community costs for each specific city. The meeting to discuss these regulations is set for Monday at 7 PM in the County Administration Building.