Gemini Capital Proposes 500-Megawatt Sioux Falls Data Center
The California developer's plan for a hyperscale facility drew questions from city officials about water, power and economic impact.
Updated on Nov. 10, 2026 in Data Centers
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Gemini Data Center SD LLC, a project of California-based developer Gemini Capital, is proposing a 500-megawatt hyperscale data center in Sioux Falls. Founder Michael Anvar addressed concerns about water, power and economic effects at a Regulatory Oversight Committee meeting.
Why it matters
A facility of this scale would draw heavily on local water and electricity, making the project's cooling design and utility cost arrangements central to residents of Sioux Falls. Its projected tax revenue would also be significant for the city and the state.
The proposed facility would have 500 megawatts of capacity and use a closed-loop cooling system that reuses its cooling water. The project has no selected end user, and the developer has not built a data center before.
The players
Gemini Capital
A California-based real estate developer behind the proposed Sioux Falls data center, which has not previously built a data center.
Michael Anvar
The founder of Gemini Capital who addressed water, power and economic concerns before the Sioux Falls committee.
Xcel Energy
The regional utility whose substation sits near the proposed site and which Gemini Capital has worked with on electricity costs.
The details
Gemini Capital is proposing the facility on a site between East Rice Street and Veterans Parkway, near an Xcel Energy substation. Anvar said the developer has worked with Xcel Energy so that costs are not shifted onto residents and confirmed the firm is unrelated to Google's AI platform of the same name.
Timeline
2025: The developer went through an extensive city review process, with recommendations incorporated.
Nov. 9, 2026: Developer spoke at the Sioux Falls Regulatory Oversight Committee meeting at Carnegie Hall, downtown Sioux Falls.
Late 2028 or 2029: A hyperscale data center may begin groundbreaking.
The Tech Race
The proposal follows the wave of large hyperscale data centers seeking sites in mid-sized U.S. cities, where land and utility capacity are available. Sioux Falls would join that buildout as cities compete to attract the infrastructure that supports artificial intelligence and cloud computing.
Residents would be affected through water use and electricity costs, which the developer says it has structured with Xcel Energy so they are not shifted onto households. The projected $5 million a year in municipal electricity taxes would flow into city revenue if the project proceeds.
The takeaway
Large data center projects can carry substantial tax benefits, but their water and power demands make the cost-sharing arrangements with utilities a key question for host communities. Watching how these terms are finalized will show whether residents bear any of the infrastructure costs.
Further reading
For more on the infrastructure behind this proposal, see Data Centers coverage.
Source note: This article includes information reported by Argus Leader.
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