Sioux Falls Data Centers Face New Regulatory Review

As technology becomes an ever-increasing presence in our lives, keeping up with the demands to give us access to it has become more controversial.

Over the past several months, we are seeing more and more stories about the emergence of data centers in communities across America, with wildly diverse opinions on whether these facilities are a good thing or a bad thing.

Proponents tout the number of jobs these specialized buildings used to house critical IT infrastructure, process massive computing workloads, store digital information, and train artificial intelligence will create.

Opponents cite concerns about the centers putting an undue strain on electricity and water supplies.

Amid the discussions, the Sioux Falls City Council is forming a new group to examine the issue further.

The Regulatory Oversight Committee will be tasked with studying potential regulations related to data center development and operations within Sioux Falls. The committee will review existing regulatory frameworks, gather public input, and develop recommendations for consideration by the full City Council.

It will serve to review, study, and recommend potential changes to city ordinances. As part of this effort, the committee will examine local, state, and federal laws affecting data centers, discuss the various types of data center facilities, hear public concerns and ideas, and evaluate potential ordinance proposals.

The committee is expected to present a report and/or ordinance recommendations to the City Council no later than Tuesday, Jan. 12, 2027.

Committee members include Councilors Sara Pankonin, James Oppenheimer, Ryan Spellerberg and Rich Merkouris.

The committee’s work will include:

Reviewing current local, state, and federal laws and regulations impacting data centers.
Discussing definitions and distinctions among different types of data centers, including modular, large-scale, and hyperscale facilities.
Soliciting and considering public feedback regarding potential regulations.
Evaluating proposed ordinances and regulatory options.
Developing recommendations for city council consideration or, if consensus is not reached, presenting a report outlining available options.

Committee meetings will be open to the public and will include opportunities for public input. Meetings will be held at Carnegie Town Hall, 235 W. 10th St., at 6:00 PM on:

Monday, November 9
Monday, November 30
Monday, January 4

In addition, the Sioux Falls City Council and Lincoln County Commission will hold a joint meeting on Tuesday, Oct. 27, to discuss data center-related concerns and potential regulations.

Sioux Falls residents, businesses, and other interested stakeholders are encouraged to participate throughout the process by attending meetings, submitting comments, and sharing proposed ordinance language or supporting materials for the committee’s consideration. All feedback submitted will be shared with committee members and reviewed as part of the committee’s process. Proposed ordinances and supporting resources must be submitted to the committee by Friday, Nov. 27, 2026, for consideration.

At last report, seven of South Dakota's 11 data centers are located in the immediate Sioux Falls area.

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Take some great photos to post on social media (and don't forget the hashtag #HiFromSiouxFalls).

Sioux Falls, South Dakota. We call it the 'Sioux Empire.' It's the biggest city in the state with a population of over 206,000. We’re known for our namesake, Falls Park, along the Big Sioux River. Sioux Falls has received numerous accolades for its quality of life. We have been named the number one best place to rent in America. We’ve topped the list of Best States to Find a Job. Sioux Falls is the Best City in America for Young Professionals. We've appeared on lists such as Most Charming Small Cities, Top 10 Place to Raise Kids, and even ranked 10th in the 2020 Top 100 Best Places to Live. We have an abundance of achievements, and you can see them on the Sioux Falls Development Foundation's website.

It's a pretty awesome city and that's why we think you should come and visit. If you're coming for business or pleasure, we've put together a list of places to go and things to see.

We know you want to explore the attractions the city is known for like Falls Park, the Arc of Dreams, and the Sculpture Walk, but there's a lot more to see and do than just the touristy (that's really a word) stuff. The best places to go are where the locals go and we have a not your average, ordinary visitor's guide.

Here's a list of over 100 things to do and places to go in Sioux Falls.

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Source: Sioux Falls Examines How To Regulate Expanding Data Center Industry

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