Rapid City explores data center development amid water usage concerns

During the recent Pennington County Board of Commissioners meeting on April 15, 2025, discussions centered around the potential for data centers in the area, particularly focusing on water usage and infrastructure needs. The meeting highlighted the growing interest in attracting data centers to the county, which could significantly impact local resources and development.

Commissioner discussions revealed concerns about outdated data regarding water usage, with requests for updated information to better understand the implications of hosting data centers. The need for accurate and current data is crucial as the county considers how to manage water resources effectively while accommodating new businesses.

Assistant Planning Director Jason Tennyson shared insights from a recent planning conference in Denver, where he connected with city planners from Cheyenne, Wyoming. Cheyenne has successfully integrated data centers into their infrastructure, and Tennyson emphasized the importance of open communication with potential developers to ensure that the county remains welcoming to new opportunities.

Rusty Schmidt from the Rapid Valley Sanitary District provided a detailed overview of the water demands associated with data centers. He explained that a 50-megawatt data center could require approximately 400 gallons of water per minute, raising concerns about the impact on existing water supplies for residential and commercial use. Schmidt noted that while the demand is significant, advancements in water recovery technology could mitigate some of these concerns, allowing for a sustainable approach to water usage.

The conversation also touched on the need for high-quality water treatment, as data centers typically require water with very low levels of total dissolved solids. This requirement could necessitate substantial investments in local water treatment facilities to meet the specific needs of data centers.

As the county explores the feasibility of attracting data centers, the discussions underscored the importance of balancing economic development with responsible resource management. The board's commitment to transparency and collaboration with potential developers will be essential as they navigate the complexities of integrating data centers into the community. The outcomes of these discussions could shape the future of Pennington County's economic landscape, making it crucial for residents to stay informed and engaged in the planning process.