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The Data Center Divide

Pennington County

This restriction takes precedence while in effect. The rating below excludes temporary restrictions.

Slightly Anti-Data Center Policies

Pennington County’s enacted zoning rules limit where data centers may be built and require extra approvals and safeguards; the description says a six-month permit pause would delay new projects, while existing centers could keep operating.

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

Specific to Pennington County only.

current law · Unincorporated areas
This county zoning ordinance contains a data-processing-center-specific section governing data centers in unincorporated Pennington County.Pennington County Zoning Ordinance, Section 332 — Data Processing Centers (revised January 7, 2026)

What this means

The measure would pause permits for new data centers for six months, delaying projects, and the zoning rules limit where centers can be built and require extra approvals and safeguards (moratorium; zoning limits). Data centers could still be built in eligible areas after the pause, and existing centers could keep operating.

Timing

Ends
An unspecified date in 2025, after six months, unless otherwise extended by law

The ordinance establishes a six-month moratorium on permits and land-use approvals for proposed data centers. It expires on an unspecified date in 2025 unless otherwise extended by law.

People behind it

  • Proposed ordinance amendments adding Section 332, “Data Processing Centers,” and amending Section 511, “Fees.”

  • Authorized and adopted the six-month moratorium regulating proposed data centers in all Pennington County zoning districts.

Restrictions & requirementsHide restrictions & requirements32
  • A conventional Data Processing Center is allowed only as a Conditional Use in industrial zoning districts and is prohibited in residential and commercial districts.

  • A Modular Data Processing Center is allowed only as a Conditional Use in agriculture or industrial zoning districts and is prohibited in residential and commercial districts.

  • A six-month moratorium applies to permits and land-use approvals for proposed data centers in zoning districts where data centers are not yet regulated; it expires on a specified date in 2025 unless extended by law.

  • A conventional Data Processing Center must occupy at least 1 acre, have at least 100 feet of lot width at the front-building line, and have that line abut a public right-of-way.

  • A Modular Data Processing Center must be on a lot between 1 and 15 acres, have at least 25 feet of lot width, and use access through a legally recorded easement or right-of-way.

  • Data center structures are generally limited to 35 feet in height; structures exceeding 35 feet require an additional foot of setback for every foot of height above 35 feet.

  • A seven-foot sight-obscuring fence is required around the entire perimeter of a data center structure.

  • Cooling, ventilation, generator, and other operating equipment must be fully enclosed when mechanically feasible; otherwise, it must be screened by a wall or similar barrier at least four feet high.

  • The facility perimeter must have a buffer yard at least 25 feet wide, increasing to at least 50 feet where the lot line abuts a residential district.

  • Data center structures must be at least 100 feet from adjacent or abutting residential districts or properties, and backup generators must be at least 75 feet from residential property.

  • Data center buildings must be at least 50 feet from adjacent or abutting agriculture, commercial, or industrial property, and backup generators must be at least 25 feet from those properties.

  • Data center development is limited to 60 percent lot coverage, including structures and impervious surfaces.

  • Development that increases impervious area by more than 15 percent must treat runoff from the first 0.5 inch of rainfall.

  • A grid-connected data center cannot be permitted or installed without electric utility approval documented by a Will Serve letter confirming capacity and resources.

  • The public water utility provider must confirm that adequate water is available for the data center and planning area, and all data center cooling systems must use closed-loop designs.

  • A data center within 1,320 feet of a residential zoning district, residence, church, or school must submit a noise mitigation plan containing specified measurements, equipment and sound-source information, mitigation methods, site-plan information, and professional certification.

  • Noise may not exceed 80 dBA at the project boundary or 55 dBA at an occupied residence, church, school, or government building after applicable adjustments; the County may require independent verification or additional measurements.

  • Cargo containers, railroad cars, semi-truck trailers, and similar storage containers may not be used for any component of a data center operation.

  • A Modular Data Processing Center must be placed on a permanent foundation meeting applicable International Building Code standards.

  • Data center access roads and approaches must comply with Ordinance 14 standards for an Industrial Zoning District.

  • Data center parking must comply with the County's off-street parking requirements.

  • A Conditional Use Permit application must include a project narrative, detailed site plan, acoustical study prepared by a registered professional engineer, and any other studies, reports, certifications, or approvals reasonably requested by the County.

  • The Conditional Use Permit process requires public notice and hearings before both the Planning Commission and Board of Commissioners, including advance newspaper publication, mailed notice to property owners within 500 feet at least 30 days before the Planning Commission hearing, and a posted sign at least 10 days before that hearing.

  • A Data Processing Center Conditional Use Permit is subject to Board review for compliance with its conditions, including review triggered by a condition of approval, Board request, or substantiated complaint; additional conditions or revocation proceedings may result.

  • A Conditional Use Permit may be revoked for repeated failure to comply with conditions or when continued use threatens public health, safety, or general welfare.

  • A Conditional Use Permit terminates if the owner or operator fails to take substantial steps toward construction within two years after issuance.

  • A Building Permit for a data center may be issued only after approval of the Conditional Use application and expiration of the applicable appeal period; construction, enlargement, moving, or demolition also requires a Building Permit.

  • The Data Processing Center Conditional Use Permit application fee is $1,000, in addition to applicable building, stormwater, parking, and other permit fees.

  • A building permit application must include specified use, construction, property, site-plan, floor-plan, signature, fee, and other required information; commercial structures also require estimated construction costs and stamped professional plans.

  • Land disturbance of 10,000 square feet or more generally requires a County Storm Water Permit with site plans, erosion and sediment controls, stabilization schedules, responsible-party information, and inspections.

  • A project disturbing at least one acre may also require an Air Quality Permit, Floodplain Development Permit, waterway or wetland approvals, and a South Dakota stormwater permit.

  • Violations of the zoning ordinance or permit conditions can result in doubled permit fees for work begun without approval, fines of up to $500 per violation, imprisonment of up to 30 days per violation, separate charges for continuing daily violations, injunctions, or nuisance abatement.

Benefits & exceptionsHide benefits & exceptions12
  • Data Processing Centers are conditional uses in industrial zoning districts, allowing them to seek approval through the ordinance’s Conditional Use Permit process, in which the Planning Commission makes a recommendation and the Board of Commissioners may approve, approve with conditions, or deny the application.

  • Modular Data Processing Centers are conditional uses in agriculture or industrial zoning districts, subject to the applicable lot, access, and other standards.

  • Data Processing Centers may use a minimum one-acre lot with at least 100 feet of lot width and access from a public right-of-way: “The minimum lot area is 1 acre”.

  • Modular Data Processing Centers may occupy lots from one to 15 acres and may obtain access through a legally recorded easement or right-of-way rather than direct public-road frontage: “Access to the lot must be provided by a legally recorded easement or right-of-way”.

  • Accessory infrastructure is expressly allowed for data centers, including utilities, utility lines, electrical substations, pump stations, water towers, cooling and environmental equipment, backup power, communications connections, and security systems, when located on the same lot or unified adjacent parcels: “Include utilities%2C%20utility%20lines%2C%20electrical%20substations%2C%20pump%20stations%2C%20water%20towers”.

  • Data Processing Centers may cover up to 60 percent of the lot with structures and impervious surfaces, subject to required stormwater treatment when the impervious area increases by more than 15%: “The maximum allowable lot coverage is 60 percent”.

  • A data center structure may be taller than 35 feet if setbacks increase by one foot for each foot of height above 35 feet: “If a data center structure has a height in excess of 35 feet”.

  • A grid-connected data center may proceed after the electric utility provides a Will Serve letter confirming that it has the capacity and resources to provide electrical service: “A ‘Will Serve’ letter from an electrical company confirms they have the capacity and resources to provide electrical service”.

  • Modular Data Processing Centers must be located within one mile of an existing substation, providing a defined electrical-infrastructure siting standard: “Modular Data Processing Centers must be located within one (1) mile of an existing substation”.

  • The public water provider must verify that sufficient water is available for the data center and the planning area; cooling systems are allowed if they use a closed-loop design: “All data center cooling systems must be of closed-loop design”.

  • A facility within one-quarter mile of sensitive uses may operate at up to 80 dBA at its project fence line under a noise mitigation plan, provided it meets the 55 dBA limit at occupied residences, churches, schools, or government buildings after applicable adjustments: “The maximum sound level allowed in a noise mitigation plan is eighty (80) dBA at the site boundary”.

  • A lawful data center use that later becomes nonconforming because of a zoning ordinance or district-boundary change may continue, subject to the ordinance’s nonconforming-use rules: “Whenever the use of a premises becomes a nonconforming use through a change in zoning ordinance or district boundaries, such use may be continued”.

Sources

Specific to Pennington County only.

failed · County measure
This temporary zoning ordinance imposed a six-month moratorium on issuing permits or approving land uses for proposed data centers in Pennington County zoning districts that were not yet regulated under the county zoning ordinance.Pennington County Ordinance No. 797 (2025)

What this means

It would pause permits and land-use approvals for proposed data centers in all county zoning districts for six months (a six-month moratorium). This would significantly delay new projects, but the measure is temporary and does not expressly stop existing data centers from operating.

Timing

Ends
six (6) months after adoption, unless otherwise extended by law

The ordinance establishes a six-month moratorium on permits and land-use approvals for proposed data centers not otherwise regulated. The specific calendar expiration date is left blank, so no exact date can be determined.

People behind it

  • Authorized, approved, and adopted the temporary zoning ordinance establishing the six-month moratorium on data-center permits and land-use approvals.

Restrictions & requirementsHide restrictions & requirements1
  • Creates a six-month moratorium on issuing permits or approving land uses for proposed data centers in all Pennington County zoning districts where data centers are not yet regulated; the moratorium expires in 2025 unless extended by law.

Sources

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