South Dakota Record
Vermillion
High PriorityZoningopen

Proposed data center zoning ordinances (1565-1570)

Summary

A six-ordinance package defines data centers by megawatt size and sets where they can go — conditional uses in General Business and Light Industrial, and in General Industrial and Heavy Industrial districts including Hyperscale facilities. New rules cover noise (with certified engineers and baseline reports), cooling liquid restrictions, screening, and peak electric demand reporting. The commission split on allowing Hyperscale data centers, the largest class.

At a glance

Total mentions
7
Last 30 days
3

Rising — discussed at 5 meetings since Sep 8, 2026, up from 1 in the two months before.

Impact analysis

💰Financial impact

Data centers would pay for their own initial and secondary noise reports, but no decommissioning bond requirement was adopted.

✅Who benefits

Data center developers get a clear path to build in Vermillion, while residents get noise and utility safeguards.

⚠️Who could be affected

Residents near industrial areas could face noise and heavy electric demand from large facilities; opponents wanted stronger decommissioning protections.

Mentions & discussions (6)

MeetingNov 2, 2026

City Council Agendas, Packets and Minutes (Special) - Nov 2, 2026

Vermillion is considering its first comprehensive rules for data centers, defining three size classes and limiting where they can operate. Smaller facilities under 10 megawatts would be conditionally allowed in business and industrial zones, while larger ones would be mostly confined to heavy industrial areas. The rules could shape whether large energy-hungry data facilities ever come to town.

MeetingOct 5, 2026

City Council Agendas, Packets and Minutes (Regular) - Oct 5, 2026

The council received six draft data center zoning ordinances recommended by the Planning and Zoning Commission and decided to review them as a full council at an educational noon session rather than sending them to committee. Members flagged differences with neighboring jurisdictions' ordinances, the absence of environmental impact study requirements, and the two-megawatt definition threshold. Final readings and public hearings remain ahead.

MeetingSep 21, 2026

City Council Agendas, Packets and Minutes (Special) - Sep 21, 2026

Councilmembers pressed MRES and staff on whether data centers could drive up power costs for everyone. Staff said data centers would likely pay supplemental rates, and the city is currently drafting data center ordinances.

MeetingSep 14, 2026approved

Planning & Zoning Commission (Regular) - Sep 14, 2026

A six-ordinance package defines data centers by megawatt size and sets where they can go — conditional uses in General Business and Light Industrial, and in General Industrial and Heavy Industrial districts including Hyperscale facilities. New rules cover noise (with certified engineers and baseline reports), cooling liquid restrictions, screening, and peak electric demand reporting. The commission split on allowing Hyperscale data centers, the largest class.

MeetingSep 8, 2026

City Council Agendas, Packets and Minutes (Regular) - Sep 8, 2026

Council members are worried the Planning and Zoning Commission's data center hearings are dragging with the same comments repeated for hours. The mayor suggested adding speaker time limits to P&Z agendas, and Hellwege floated polls or written comments to speed things up.

MeetingAug 3, 2026

City Council Agendas, Packets and Minutes (Regular) - Aug 3, 2026

Six ordinances related to data centers go before the Planning and Zoning Commission on Monday, August 10 — a public hearing the city expects to be well attended. The council has no details yet and referred questions there.

We'll email you when it's on an upcoming agenda and when it's voted on, at most once a day.

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