How much electricity will a data center use?

The proliferation of hyperscale data centers across upper Midwest communities, including South Dakota and Minnesota, is generating significant concern among rural residents. These facilities, while promising tax revenue and jobs, demand vast amounts of energy and water, straining local resources. An example is the Gemini Data Center LLC, planning a facility on land rezoned by Sioux Falls near Brandon, South Dakota. Local residents in Brandon expressed strong opposition, leading to a legislative proposal in the South Dakota Legislature. On February 12, the South Dakota Legislature rejected a bill that would have mandated data centers to secure an additional permit from any neighboring city or county within a mile of the proposed site. This bill was a direct response to Brandon residents' concerns over the Gemini Data Center's location, which was approved by Sioux Falls without their input. Ted Smith, Vice President of Engineering and Operations at Sioux Valley Energy, highlighted the substantial electricity usage of these centers, estimating them to consume 6 to 10 times more than a city like Brookings, South Dakota. He noted data centers prefer northern climates for cooling efficiency but require significant new infrastructure, including transmission lines and generation. Smith emphasized that Sioux Valley Energy and its parent, Basin Electric, are proactive in establishing special rates to ensure data centers cover their infrastructure costs, preventing negative impacts on existing rural electric customers.