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The Data Center Divide

Minnehaha County

Slightly Anti-Data Center Policies

South Dakota requires data centers using at least 10 megawatts to have separate electricity-service terms and cover attributed costs; water notices, local supply reviews, possible limits, and public reporting also apply. The utility commission may charge for reviewing certain agreements.

Rating and summary from South Dakota statewide as there are no scored current or future laws outside temporary restrictions for Minnehaha County.

Specific to Minnehaha County only.

pending · Unincorporated areas
Would regulate future data-center projects to encourage technology facilities while protecting public health, safety, and welfare, but remains a nonbinding discussion proposal that was returned for additional work and further public review rather than adopted.Minnehaha County Draft Data Center Regulations (2026)

What this means

If enacted, the draft would bar data centers of 500,000 square feet or more and require smaller projects to obtain a conditional-use permit, meet a half-mile setback, and submit water, power, and other plans. These conditions could make building and expanding data centers substantially harder, though smaller projects would not be completely banned; the draft was still under discussion, with no action taken.

People behind it

  • Minnehaha County Planning Director who authored and presented the draft data center ordinance.

  • County department whose staff crafted the proposed regulatory language and would administer planning and zoning aspects of the measure.

Restrictions & requirementsHide restrictions & requirements26
  • Data centers may operate only in C Commercial, I-1 Industrial, or I-2 Industrial districts and require a conditional use permit.

  • Buildings larger than 500,000 square feet used as data centers are classified as hyper data centers and are prohibited.

  • Data centers and all related equipment and structures must be at least one-half mile, or 2,640 feet, from dwelling units, schools, churches, and parks, unless an affected landowner grants a waiver.

  • Applicants must submit a lighting plan, and all outdoor lighting must use full-cutoff fixtures that prevent upward or adverse light impacts.

  • A secure chain-link, solid wood, or masonry fence at least six feet high must surround the entire data center building.

  • Noise from the data center may not exceed 55 dB(A) at any property line.

  • Applicants must submit licensed-engineer sound modeling and noise-mitigation plans identifying sound sources and predicted noise levels at property boundaries.

  • After construction, a licensed engineer must conduct field testing to verify noise compliance, and the County may require independent or additional measurements.

  • Emergency generators must be housed in high-level acoustic enclosures.

  • Applicants must provide a comprehensive water study showing the water source and demonstrating that use will not drain local groundwater or disrupt existing users.

  • Applicants connecting to an existing water system must provide documentation from the water provider confirming sufficient capacity.

  • Applicants must submit power-source and grid-connection plans, including a utility statement confirming adequate capacity on the relevant lines and substations.

  • Buildings exceeding 100 feet in length or width must break up their mass at least every 100 feet through architectural recesses, material changes, or color shifts.

  • Unfinished aluminum, vinyl siding, and T1-11 siding are prohibited as exterior finishes.

  • Cargo containers, railroad cars, semi-truck trailers, and similar storage containers may not be used for any part of the operation.

  • Data center buildings and equipment must use unobtrusive, nonreflective, earth-tone colors.

  • On-site electrical wires must generally be installed underground, except at specified interconnection points and where allowed for connection to the local utility grid.

  • All data center buildings must comply with the county's most current adopted International Building Code and all fire-code requirements.

  • Before construction begins, permittees must identify proposed state, county, or township haul roads, notify the governing road authority, and allow adequate time for road inspection.

  • Before using approved haul roads, permittees must arrange with the relevant road authority for maintenance and repair of damage caused by construction traffic and notify the County Planning Department of those arrangements.

  • Before construction, permittees must submit a soil erosion and sediment control plan addressing grading, water quality, revegetation, slope stability, restoration, and minimization of surface disturbance.

  • Applicants must submit a licensed-engineer drainage plan showing that runoff from buildings and paved surfaces will not increase downstream flows during a 10-year storm event.

  • Before any ground disturbance, applicants must submit an emergency response plan covering specified natural-disaster, fire, security, transmission, environmental, chemical, pipeline, and medical contingencies.

  • The emergency response plan must include evacuation routes, emergency staging areas, and a separate protocol for battery-energy-storage areas when applicable.

  • The emergency response plan must be developed in coordination with local first responders and Minnehaha County Emergency Management.

  • The Planning Commission may require a decommissioning or restoration plan as a condition of approval, including removal of infrastructure to four feet below ground, site restoration, and a reclamation bond covering decommissioning costs.

Benefits & exceptionsHide benefits & exceptions5
  • Data centers may be established through a conditional-use permit on land zoned C Commercial, I-1 Light Industrial, or I-2 Industrial.

  • The required half-mile setback from dwellings, schools, churches, and parks may be waived when the affected landowner provides a waiver.

  • Common computer servers used for ordinary business purposes are excluded from the definition of a data center and therefore from these data-center-specific regulations.

  • Applicants may redact confidential or proprietary information from required emergency-response submissions.

  • The regulations allow practical use of existing roadways and all-weather roads for construction deliveries and other project activities.

Sources

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