Rapid City weighs data center rules

Rapid City residents face new potential restrictions on data centers as the city considers two paths to regulate the industry. Mayor Jason Salamun announced on Thursday that he supports either a six-month moratorium or an immediate interim ordinance. His goal is to establish rules for water usage, power capacity, and facility locations before more projects begin construction.

The mayor prefers the interim ordinance approach. He argues that a temporary set of rules provides better guardrails than a simple pause. A delay would extend the wait for permanent regulations, which have been in development for several months. The city wants to address specific concerns about infrastructure and neighborhood impact without leaving the sector unregulated.

Salamun outlined specific criteria for what he calls hyperscale data centers. He defines these facilities as those consuming more than 50 megawatts of power and 10,000 gallons of water. He stated that the city should ban this class of centers from operating within Rapid City limits. This definition aims to distinguish large industrial operations from smaller commercial facilities.

The timeline for these changes is tight. The stopgap proposal will go to the Planning Commission on November 25. It then moves to the City Council for two readings in December. Following a 10-day publishing period, the new rules could take effect in January. If the city waits for the permanent ordinance, which returns to the Planning Commission at the end of January, the effective date would likely slip to March.

Salamun emphasized the city's current legal position. He noted that no building permit for a data center has been issued in Rapid City yet. However, he warned that under the current ordinance, the city has little authority to stop a developer from obtaining a permit once they apply. The interim rules would give city staff the tools to review applications against clear standards for water, power, and noise.

The permanent ordinance has been delayed while staff analyzed public comments and researched issues like noise pollution and site closure procedures. Salamun said these factors are critical for determining where facilities can be placed. He wants to ensure data centers are kept away from residential areas to minimize noise disturbances. If neither the moratorium nor the interim ordinance passes, data centers will remain allowed under existing laws with minimal oversight.