Data centers in Sioux Falls, and how to have your say

If you've heard "hyperscale data center" a lot this year and aren't sure what it means for Sioux Falls, you're not alone.

It's one of the biggest land use questions our city has faced in a while, and the city is asking for your input. Here's what's happening, in plain words, and every chance you'll have to weigh in.

First, what is a data center?

A data center is a building full of computers that run our apps, store our photos and, more and more, power artificial intelligence. A "hyperscale" data center is the biggest kind: a campus that can use as much electricity as a small city, and often water to keep the computers cool.

So communities everywhere are asking the same questions. What does this mean for our power bills, our water and our neighbors? And what do we get in return?

What's proposed in Sioux Falls

A California company called Gemini Capital owns about 164 acres in northeast Sioux Falls, east of Veterans Parkway and south of East Rice Street. It's less than a mile from a Brandon neighborhood.

The proposed site, about 164 acres between Sioux Falls and Brandon. Map by Rising Together, using City of Sioux Falls GIS and U.S. Census data.

• In January, the City Council rezoned the land from agricultural to light industrial so a data center could be built there.
• Let Sioux Falls Vote tried to put the rezoning to a citywide vote. The petition fell 1,692 signatures short.
• The project has been described as a hyperscale campus of up to 500 megawatts. No company has been named to run it, and no building permits have been requested yet.

What the state already did

In March, Gov. Larry Rhoden signed a state law that makes larger data centers cover the electric rate increases they cause and adds water use rules. It also keeps the state from overriding city and county rules on data centers. That means the rules for Sioux Falls are still ours to write.

Pause, or guardrails?

On Oct. 5, a coalition of groups, including Let Sioux Falls Vote, Dakota Rural Action and South Dakota for Data Center Transparency, asked the city for a temporary pause on permits for large data centers until local rules are in place.

"A moratorium is a pause. It's not a forever no," Amanda Kendall of Let Sioux Falls Vote told Sioux Falls Live. "We're not anti-development. We're not anti-business."

Mayor Christine Erickson has said she prefers putting guardrails in place over a pause. She said a moratorium "sends a dangerous message to people."

Both sides want rules in place. The difference is the order: pause first and then write the rules, or write the rules while projects keep moving.

What the city is doing now

On Oct. 13, the City Council formed a committee of Council members Sara Pankonin, James Oppenheimer, Ryan Spellerberg and Rich Merkouris. It will study current laws and proposed rules, hear from the public, and report to the full council in January.

How to have your say

Every one of these meetings is open to the public, with time for you to speak.

• Tuesday, Oct. 27: Joint meeting of the Sioux Falls City Council and Lincoln County Commission on data centers.
• Monday, Nov. 9, 6 p.m.: Committee meeting at Carnegie Town Hall, 235 W. 10th St.
• Friday, Nov. 27: Last day to send the committee proposed rules or supporting materials.
• Monday, Nov. 30, 6 p.m.: Committee meeting at Carnegie Town Hall.
• Monday, Jan. 4, 6 p.m.: Committee meeting at Carnegie Town Hall.
• Tuesday, Jan. 12: The committee reports to the full council.

More information, and how to send the committee your comments, is at siouxfalls.gov/ROC.

Not sure what to say? Start with a question

You don't need to be an expert. Pick the one you care about most:

• How much water would it use, and where would it come from?
• How far should it be from homes, and what about noise and lights?
• What does Sioux Falls get in return, in jobs and taxes?

Where I stand

I want to be upfront, the same way I was about Smithfield. I've spoken on this before.

I was at City Hall on Jan. 6, the night of the rezoning vote, when hundreds of neighbors filled the room. The council heard them, then approved it. That night, I spoke with some of the young people who had come to protest.

During my campaign, I said there should be no new hyperscale data centers in Sioux Falls unless they meet real standards for our community. Not a flat no. Guardrails: an independent review published before any vote, a water study, protections for the Big Sioux River, protection for families from grid costs, real local jobs, and a public comment process that isn't just a box to check. I still believe all of that.

Some of it has moved since then. The state's new law now makes large data centers cover the rate increases they cause and adds water rules. The rest is exactly what our city's new committee can take up.

My biggest frustration in January was the order of things. The city voted while the state was still writing its rules. This committee is a chance to get the order right. Listen first. Build second. It's the same thing I wrote about The Quarry.

You don't have to agree with me. That's the point. Bring your own view to these meetings. This one is still being written, so let's make sure we're in the room.

Got a question about data centers you want me to dig into? Send it my way.

It's always been our city, and now is our moment. Let's rise together.

Sources

• City Council announces committee to review data center regulations, City of Sioux Falls, Oct. 13, 2026
• Groups ask state's largest city for data center permitting pause, SDPB, Oct. 5, 2026
• Coalition asks Sioux Falls City Council for moratorium on permits for hyperscale data centers, Sioux Falls Live, Oct. 5, 2026
• Petition drive to force election of data center zoning fails, Sioux Falls Live, Jan. 30, 2026
• Rhoden signs Data Center Bill of Rights bill, SDPB, March 25, 2026
• Still open for business, not for sale, Vince Danh, June 9, 2026
• Gemini hyperscale data center may come to Sioux Falls. What to know, Sioux Falls Argus Leader

Map: Rising Together, using City of Sioux Falls GIS and U.S. Census TIGER data.