Data center activity in South Dakota
South Dakota's regulatory environment is characterized by moratorium headwinds and mixed zoning results, with at least 8 moratoriums enacted and 4 rejected alongside at least 5 zoning approvals and 2 denials. Only 1 project has been reported as approved despite opposition, with no projects reported as blocked, though the medium confidence level and limited media coverage of just 128 clips suggest this picture may be incomplete. Compared to neighboring North Dakota, which has more moratorium activity but slightly better zoning outcomes, South Dakota shows a similar pattern of local caution about data center growth. With only 12 active companies, the market is small and may lack the critical mass to generate sustained developer interest.
South Dakota's regulatory environment is characterized by moratorium headwinds and mixed zoning results, with at least 8 moratoriums enacted and 4 rejected alongside at least 5 zoning approvals and 2 denials. Only 1 project has been reported as approved despite opposition, with no projects reported as blocked, though the medium confidence level and limited media coverage of just 128 clips suggest this picture may be incomplete. Compared to neighboring North Dakota, which has more moratorium activity but slightly better zoning outcomes, South Dakota shows a similar pattern of local caution about data center growth. With only 12 active companies, the market is small and may lack the critical mass to generate sustained developer interest.
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Montana-Dakota Utilities (MDU) received state approval from the South Dakota Public Utilities Commission to provide electricity for a proposed data center in Macpherson County. The data center developer still needs a conditional use permit from the Macpherson County Board of Adjustment before construction can begin.
The McPherson County Planning and Zoning Board has deferred action on a conditional use permit for the proposed 50-megawatt Leola Data Center in north central South Dakota. The decision was postponed pending financial contribution agreements with the company, as the project faces community pushback over water and power usage concerns.
The McPherson County Planning and Zoning Board deferred action on a conditional use permit for the proposed 50-megawatt Leola Data Center. The board postponed the vote pending legal agreements regarding financial contributions from the company for local schools and first responders. The data center is planned for about 9 acres and would use water equivalent to a four-person household.
Rapid City, South Dakota is debating the impact of energy-intensive data centers, with local leaders proposing new ordinances to ensure public input on future projects. This local pushback follows an EPA proposal that would eliminate public notification requirements for air pollution permits for minor industrial facilities, including data centers. Concerns about environmental transparency, local control, and the influence of tech company campaign funding, such as over $500,000 from a Meta-backed PAC, are central to the debate.
A reader from the Black Hills Pioneer highlights widespread citizen opposition in Nebraska, New Mexico, Wyoming, and Pennsylvania against proposed AI data centers, citing concerns over farmland and water supplies. The reader urges South Dakota's congressional team to support these citizens in their vital efforts.
Clay County and Vermillion, South Dakota, are discussing potential data center development amidst significant community opposition. The Vermillion Planning and Zoning Commission is proposing amendments to zoning regulations, while residents voice concerns about noise, light, water, and power usage. This comes as Yankton County previously enacted a moratorium to study impacts.
The McPherson County Planning and Zoning Board postponed its decision on a conditional use permit application for the proposed 50-megawatt Leola Data Center. The deferral means the board did not immediately approve or deny the permit for the facility, which would be built on nine acres and consume a significant amount of water.
Data centers are becoming a significant issue in the November election in South Dakota, with candidates for the Public Utilities Commission (PUC) holding opposing views on their development. Democrat Frank Kloucek advocates for a year-long moratorium and pledges to fight new centers, while Republican Don Haggar supports a more regulated approach, citing the recently passed 'Data Center Citizens Bill of Rights'. The debate centers on concerns over utility prices, water usage, and quality of life.
South Dakota gubernatorial candidates Dan Ahlers and Larry Rhoden discussed their differing views on data centers ahead of the upcoming election. Rhoden supports data center development, highlighting a bill he signed to protect water and electricity resources and address national security concerns regarding foreign data ownership. Ahlers, however, expressed reservations about large hyperscale data centers and suggested a pause for further evaluation.
A South Dakota Public Utilities Commission race is highlighting a debate over a proposed one-year moratorium on new AI data center projects. Democratic candidate Frank Kloucek supports the moratorium to study impacts on energy and water, while Republican Don Haggar opposes it, citing existing regulations. Voters will decide on November 3.
A potential settlement has been reached regarding the provision of electricity to a data center located in McPherson County, South Dakota. The state's Public Utilities Commission is scheduled to hold a meeting on September 8th to decide on whether to approve Montana-Dakota Utilities' plan to supply power.
Candidates for the South Dakota Public Utilities Commission are debating a proposed one-year moratorium on new artificial intelligence data centers in the state. The Democratic nominee supports the ban, citing concerns over electrical infrastructure strain and potential energy bill increases for residents. His Republican opponent calls the proposal reckless and believes existing state laws are adequate.
State regulators and a county board are scheduled to make a crucial decision regarding the future of a data center project in Leola, South Dakota. Their upcoming ruling will determine whether the proposed data center can proceed with development.
A Democratic candidate for South Dakota's Public Utilities Commission has proposed a year-long moratorium on data center development, citing concerns over utility prices and water usage. His Republican opponent argues that existing state regulations, including the "Data Center Citizens Bill of Rights," are sufficient. The debate is a key issue in the upcoming state election.
Senate Majority Leader John Thune has publicly broken with former President Donald Trump on several policy issues, including the construction of AI data centers. Thune argued that data center companies should be self-sufficient and avoid areas facing local opposition, citing a South Dakota law limiting industrial construction. This contrasts with Trump's view that data centers are essential for economic progress.
A Democratic candidate for the South Dakota Public Utilities Commission (PUC) is proposing a one-year moratorium on new artificial intelligence data centers, citing concerns about electrical infrastructure and ratepayer costs. His Republican opponent criticizes the proposal, stating that recently enacted state laws are sufficient for regulating the industry. The debate highlights differing approaches to data center development in the state.
Candidates for South Dakota's utility regulator position are clashing over the potential for a pause in AI data center development. This debate highlights the regulatory landscape and energy considerations for data centers in the state.
The City of Vermillion, South Dakota, is continuing its discussions and debate regarding new rules and regulations pertaining to data center development within its jurisdiction. These rules likely concern zoning or other land-use policies for data centers.
Nineteen Democratic candidates for the South Dakota state legislature have pledged to seek a one-year moratorium on new data centers if elected. This initiative follows a previous attempt by House minority leader Erin Healy to introduce a similar bill, which was rejected. The pledge indicates a renewed push for a data center moratorium in the state.
The CEO of the Aberdeen Development Corp. advocated for clear and reasonable guidelines in the city's upcoming data center ordinance. The organization emphasized the need for predictable expectations to attract data center developers. This ordinance aims to establish a framework for future data center development within the city.