Sioux Falls Council Formed Data Center Committee
The city has launched a committee to study regulations for large-scale data center energy consumption and zoning.
Updated on Oct. 13, 2026 in Data Centers
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The Sioux Falls City Council has formed a new Regulatory Oversight Committee to investigate potential regulations for data centers. The move follows concerns regarding the high energy requirements of proposed projects compared to local power plant capacity.
Why it matters
Local officials are seeking to clarify their regulatory authority over data centers and evaluate the long-term impact that high energy usage from these facilities could have on the city infrastructure.
The proposed Gemini Data Center requires 500 megawatts of power, exceeding the 400-megawatt capacity of the Angus Anson Power Plant. The project site was officially zoned for light industrial use in January 2026.
The players
Sara Pankonin
She is a member of the Sioux Falls City Council currently serving on the Regulatory Oversight Committee.
James Oppenheimer
He is a Sioux Falls City Councilor participating in the committee to review data center regulations.
Ryan Spellerberg
He is a city councilor appointed to the committee tasked with evaluating data center impacts on the city.
Rich Merkouris
He serves on the Sioux Falls City Council and is a member of the newly formed Regulatory Oversight Committee.
The details
The newly formed Regulatory Oversight Committee will conduct public meetings and workshops to review current local and federal regulations while evaluating ordinance ideas submitted by the community. Councilors are working to determine if they can secure majority support for new policies that might govern development on previously zoned land.
Timeline
The Gemini Data Center site was zoned for light industrial use in January 2026.
The committee will hold a public meeting at Carnegie Town Hall on November 9, 2026.
A second public meeting is scheduled for November 30, 2026.
The committee will host its final public meeting on January 4, 2027.
A final report and ordinance recommendations are due to the City Council by January 12, 2027.
The Tech Race
This effort follows the broader industry trend of high-capacity data center energy demand putting strain on regional power grids. It reflects a growing tension as municipalities attempt to balance light industrial zoning incentives against the realities of massive utility consumption.
Residents may see changes in land-use policies that could affect the future development of industrial sites within the city. The committee is specifically soliciting public ordinance ideas, giving citizens a direct path to influence how energy-intensive businesses operate in their neighborhoods.
The takeaway
Large-scale technology infrastructure projects often outpace local grid capabilities and existing zoning frameworks. Communities are increasingly creating oversight bodies to ensure that rapid industrial growth aligns with long-term energy and infrastructure stability.
What happens next
The committee will host public meetings on November 9, 2026, November 30, 2026, and January 4, 2027, with final recommendations due to the City Council on January 12, 2027.
Further reading
For additional context on the local industry landscape, visit the Sioux Falls Data Centers section.
More information
To review the committee agenda or submit data center ordinance ideas, visit the city government portal.
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