McPherson County approves moratorium on data centers, enacts one mile setback
Buildings used to house large computer and information technology systems
After considering a conditional use permit for a data center that would be near Leola, the McPherson County Board of Adjustment passed a moratorium on the facilities.
It will be in place until the county develops and approves a data center ordinance.
The moratorium, which temporarily bans permits for data centers from being issued, was approved during a Dec. 19 meeting.
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In a general sense, a data center is a building or buildings that house large computer and information technology systems. There can be various uses, but they help store, process and distribute data and applications often used by businesses.
A 50-megawatt data center, which would be the largest in the state, is proposed for just outside of Leola. Bill Connors, the owner of Leola Data Center, is seeking a conditional use permit from the county, which would allow construction to commence.
Connors has leased 20 acres of land from Derek and Laura Deraad, though the data center would use less than five acres of that land.
McPherson County State’s Attorney Austin B. Hoffman provided the zoning board with a template of what a data center ordinance could look like during the board of adjustment meeting. He said he looked for other such zoning ordinances in South Dakota and found that Grant County has a policy.
“Ultimately, I just used theirs as a template. Where we’re going to end up with it is still up for discussion,” Hoffman said.
The proposed data center cannot move forward until the board of adjustment takes action.
During the meeting, members of the public aired their concerns about the Leola Data Center and the prospect of similar projects in the future. Their concerns included electricity use, cleanliness, drainage, traffic, local benefit, security and noise, according to meeting minutes.
According to a 2023 task force study, the data center will not adversely affect the power system.
The ordinance template sparked discussion about setback distances. The board ultimately approved a motion requiring a mile setback for data centers, according to meeting minutes.
The McPherson County Zoning Board, who doubles as the board of adjustment, will meet on Jan. 14, 2025, to further discuss the data center ordinance, according to Hoffman.
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Yes you should stop economic growth that would add tax base and increase funds to run your governmental spending. Study shows no impact on energy. How many people leave your county due to lack of employment? Any size able new construction recently? Think small and remain small.
Way to go McPherson County! It's too bad other commissions throughout SD don't follow your example in protecting citizens from projects like these data centers and the deadly Co2 pipeline. Thank you for representing the wishes of your county citizens.
The Lake County Commissioners, as one example, refuses to acknowledge repeated requests from citizens to establish setbacks and ordinances. It may take a lawsuit for them to realize they were elected to represent the people, not their own agendas or the agenda of certain political leaders who are looking to line their pockets with our tax dollars.