Erik Muckey

On concerns about hyperscale data centers

The concern I hear most is simple: South Dakotans feel the deal is done before they ever get a say. My friends and neighbors across the state aren't anti-tech or anti-development, but they're tired of learning about billion-dollar projects after the agreements are signed. And they bring practical questions. How much water and electricity will these facilities pull, and will my utility bill go up to cover it? Why are we offering tax incentives to out-of-state corporations if we can't give South Dakotans a break on grocery sales tax? What happens to clean water, to neighborhoods, to the farmland and commercial property displaced by hyperscale data centers? Are hyperscale data centers really the best use of our economic development resources? South Dakotans want transparency, local control, and the right to be heard. Right now, too many feel they're getting less information than the developers sitting across the table for projects requiring huge resources with little opportunity.

How they’d address those concerns

No blank checks, and no secrecy. I co-sponsored a one-year moratorium on hyperscale data centers because South Dakota doesn't have an appropriate regulatory framework yet. Until we do, we shouldn't be signing deals we can't undo. An appropriate regulatory process values local and constituent voices and sets a clear, high bar for a project to move forward. The company pays for the water, power, and transmission it uses, not the family watching their utility bill climb. The community gets real input and the authority to say yes or no, not a ribbon-cutting they read about after the fact. We see the financing, the tax deals, and the real jobs and revenue numbers, and we verify them. And there's money set aside up front to clean up the site and take care of workers if the project leaves. I'll also ensure definitions are clear, because the lack of a definition for "hyperscale" is exactly what sank the bill to end data center NDAs. The smaller centers we already have, including a well-publicized success story in Sully County, have been useful. Hyperscale is a different animal, and it deserves more scrutiny at every step. My constituents have made it clear to me: hyperscale data centers should not come at the cost of their water, their neighborhoods, their tax dollars, or their voice.