The Rapid City Planning Commission on Nov. 21 adopted an ordinance amendment adding a definition for "data centers" and allowing them in light industrial and heavy industrial zones, subject to documentation of sufficient electrical, water and sewer capacity at the building-permit stage.

City staff described the change as a zoning clarification that places data centers in industrial zones "because they take up a lot of land" while noting that "they do need to provide documentation that, at the building permit stage, they're able to obtain adequate electrical capacity supply to support the data center," and that similar proof of water and sewer capacity would be required and agreed to by utility providers.

Commissioners focused their questions on water availability and long-term cumulative demand. One commissioner said, "The water side is what concerns me. We can't really generate water. We just have to take what we have," and asked whether staff can reliably forecast community water supply. Staff replied that feasibility studies must accompany a building permit and that if regional improvements are required, the project could be brought before the public works committee and city council and that a moratorium could be considered if multiple centers threatened local supplies.

Staff also said routing of building permits will include utility providers and, when applicable, federal or defense stakeholders. Commissioners urged staff to include Ellsworth and other relevant agencies in permit routing to surface potential national-security or proximity concerns.

The commission moved, seconded and approved the ordinance amendment by voice vote. The ordinance requires applicants to submit, at building permit stage, utility-provider agreements and feasibility studies demonstrating sufficient electrical and water capacity before a building permit can be issued; building permits may be denied or conditioned if utilities cannot demonstrate adequate supply or if off-site improvements are required.

No specific data-center project was before the commission; the amendment updates the zoning code to establish where such facilities are permitted and what utility proof will be required at the permit stage.