Sioux Falls forms committee to oversee data center regulation

The Sioux Falls City Council has established a Regulatory Oversight Committee to examine the development and operation of data centers within the city. The committee is tasked with studying potential regulations, reviewing existing local, state, and federal laws, and developing recommendations for the full City Council.

The initiative follows growing debate regarding the impact of data centers, which house critical IT infrastructure and support artificial intelligence. While proponents highlight job creation, opponents have raised concerns regarding the strain these facilities place on local electricity and water supplies. The committee will evaluate various facility types, including modular, large-scale, and hyperscale centers, and is expected to present its findings or ordinance recommendations by January 12, 2027.