Data center activity in South Dakota
South Dakota has improved noticeably over the past quarter, driven by a market where moratorium efforts are frequently contested, with at least nine enacted and at least six rejected. Zoning outcomes are mixed but positive, with at least seven approvals against two denials and at least two projects approved despite opposition. No lawsuits have been reported, and at least 22 companies are active. Coverage is thinner here than in larger markets, so this picture may be less complete than for neighbors like Iowa or Minnesota.
South Dakota has improved noticeably over the past quarter, driven by a market where moratorium efforts are frequently contested, with at least nine enacted and at least six rejected. Zoning outcomes are mixed but positive, with at least seven approvals against two denials and at least two projects approved despite opposition. No lawsuits have been reported, and at least 22 companies are active. Coverage is thinner here than in larger markets, so this picture may be less complete than for neighbors like Iowa or Minnesota.
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South Dakota Gov. Larry Rhoden discussed data center development, electricity costs and water use during a Mitchell Rotary Club meeting. He said the state will evaluate facilities as economic development projects while requiring reliable power plans, protection for utility customers and reviews of water use.
The Aberdeen City Council adopted Resolution No. 26-10-01R extending the city’s moratorium on issuing local permits for data centers until July 1, 2027. The extension allows additional time to study permanent regulations addressing potential impacts on water, wastewater, electric infrastructure, emergency services, noise and land use.
A conditional use permit request for a proposed data center near Leola remains undecided after being tabled again. The repeated delay leaves the project's future uncertain.
Aberdeen city leaders voted to extend the moratorium on new data centers until July of next year. The extension gives the city more time to draft rules addressing facility size, noise, water and electricity use, and workforce and housing impacts.
The article raises the question of whether a data center may be coming to Perkins County, South Dakota. No specific project details, developer, company, or government action are provided.
In an opinion column, Brian Bengs argues that the rapid expansion of artificial intelligence and the data centers supporting it is proceeding without adequate safety, environmental, or public oversight. He criticizes the power and water demands of data centers and calls for slowing AI development rather than prioritizing corporate profits and competition with China.
Rapid City Mayor Jason Salamun discussed proposed regulations that would prohibit hyperscale data centers, require conditional-use permits for large facilities and apply different standards to smaller operations. The city is seeking public feedback, with the proposal expected to return to the Planning Commission before going to the City Council, while Salamun emphasized protecting local water resources.
Three Republican candidates running unopposed for the Lincoln County Commission discussed growth, land use and hyperscale data centers. A proposed data center moratorium introduced by Joel Arends previously failed, while candidate Amy Harms supports a one-year moratorium and Joni Ekstrum favors case-by-case review.
Rapid City officials are considering regulations that would limit power and water use, noise and setbacks for future data centers. More than 150 residents attended a public meeting, while Sequitor Edge advances plans for a proposed $52 million facility in south Rapid City.
Rapid City officials are developing an ordinance to regulate large data centers, addressing water use, noise, power consumption and setbacks from residential areas. At an informational session attended by nearly 250 residents, public opinion generally favored requiring conditional approval or prohibiting larger facilities within city limits.
Rapid City's Community Development Department held an open house attended by more than 150 residents to gather feedback on a proposed ordinance amendment regulating data centers. City officials, including Community Development Director Vicki Fisher and Planning Manager Jessica Olson, presented information and a survey for public input.
McCook County commissioners are considering zoning changes that could explicitly prohibit data centers after residents raised concerns about land inquiries near Montrose. No formal project application or county action has been filed, but residents are discussing a petition and an incoming commissioner has proposed a temporary ban while officials study the issue.
Sioux Falls-area legislative candidates offered varied views on hyperscale data centers, with many opposing or expressing skepticism about their potential effects on water supplies, electricity costs, natural resources and communities. Some candidates supported stricter safeguards, while one proposed a two-year moratorium and others cited the need for more information or local control.
Rapid City’s Community Development Department hosted an open house on a proposed ordinance regulating data center development. The event gave residents an opportunity to review and discuss the proposed rules.
Rapid City surveyed more than 220 residents about how the city should regulate data centers, with most respondents expressing opposition or support for strict limits. City officials plan to use the feedback to develop policies governing data centers of 10 megawatts or more, including limits related to size and resource consumption.
The Sioux Falls City Council has formed a Regulatory Oversight Committee to review existing laws and consider possible ordinances governing data center development, including large-scale facilities. The committee will hold public meetings and gather resident input before presenting recommendations to the council in January.
The Sioux Falls City Council is beginning a months-long review of potential regulations for large data centers amid public concern about their energy demands. Councilors are considering whether any new rules would apply to the proposed Gemini data center on the city’s eastern edge, which is also undergoing rezoning discussions.
McPherson County commissioners heard a petition from residents seeking denial of a permit for a proposed 50-megawatt data center. The petition signals active local opposition to the project, but no commission decision is reported.
Rapid City will hold an Oct. 14 open house to gather public input on proposed data center regulations covering setbacks, utility use, noise and vibration. The Planning Commission postponed further discussion until Nov. 5 to allow revisions and additional feedback.
An opinion submission argues that South Dakota should continue supporting artificial intelligence and data center development. It claims recent legislation, including SB 128 and SB 135, places limits and conditions on data center power and water use, while noting the state has not required operators to generate their own power or use closed-loop water systems.