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County staff proposes a data‑center ordinance ahead of potential inquiries
Summary
Planning staff told commissioners they are researching ordinance language for data centers after learning of increasing demand and one possible Rapid City‑area proposal; staff flagged utility, water and height concerns as prominent regulatory issues.
Pennington County planning staff said on Jan. 22 they are drafting proposed ordinance language for data centers to be ready if a project is proposed in county jurisdiction.
Planning Director Brittney Molitor said demand for data centers appears to be rising and staff reviewed Urban Land Institute guidance and ordinances from peer counties. “The demand for data centers is increasing and the ... utility requirements are pretty significant,” Molitor said, noting that an 80,000–100,000 square‑foot footprint is common and that electricity and water requirements—plus building heights and security—raise zoning and infrastructure issues.
Molitor said Rapid Valley has areas of heavy industrial zoning along Highway 79 south of Lamb Road and that Rapid Valley Sanitary District is the main utility provider; she cautioned that many data centers draw large amounts of electricity and often require extensive water for cooling, which may trigger state water‑right reviews if wells or off‑grid sources are proposed.
Staff noted that Grant County is among the few South Dakota counties with a formal data‑center ordinance and that Rapid City has adopted data‑center language for its jurisdiction. Commissioners asked whether any data centers were proposed; Molitor said she had heard of “possibly one in Rapid City” but had no confirmation the project would proceed.
Next steps: Staff will continue research and prepare ordinance language for future review so the county can respond quickly if an applicant seeks approval. No formal action was taken.
