South Dakota Launches New Defense Institute

Governor Rhoden announces $5 million investment to establish the South Dakota Defense Institute.

Apr. 8, 2026 at 8:51pm

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A dynamic, abstract painting of a fighter jet in flight, its silhouette repeated and overlapping in waves of dark blue, teal, and silver, conveying a sense of motion and energy around the topic of national defense.South Dakota's new defense institute aims to make the state a hub for national security innovation and contracting.Rapid City Today

South Dakota Governor Larry Rhoden has announced the creation of the South Dakota Defense Institute (SDDI), a new hub intended to connect businesses, education, and government to help the state's companies compete for federal defense contracts. The state will invest $5 million from the Future Fund to establish and operate the institute for an initial five-year period.

Why it matters

The governor's office says the institute is expected to serve as a central coordinating point for partners across the defense ecosystem and engage directly with federal defense agencies to support businesses pursuing defense contracting opportunities. This represents a strategic effort by South Dakota to position itself as a hub for the national defense industry.

The details

The South Dakota Defense Institute will be organized adjacent to the Governor's Office of Economic Development and staffed by experienced leaders with military and defense industry backgrounds. It will partner with private businesses, local economic development organizations, and state agencies including the South Dakota National Guard, the Department of Labor and Regulation, the Board of Regents, and the Board of Technical Education. An additional $1 million from the Future Fund will go to Elevate Rapid City to help purchase a building in Rapid City's 'Innovation District' that will serve as the institute's headquarters and a collaboration space.

  • The South Dakota Defense Institute will be established and operational over the next five years.
  • The state will invest $5 million from the Future Fund to fund the institute during this initial period.

The players

Governor Larry Rhoden

The governor of South Dakota who announced the creation of the South Dakota Defense Institute.

South Dakota Defense Institute (SDDI)

A new hub intended to connect businesses, education, and government to help South Dakota companies compete for federal defense contracts.

Elevate Rapid City

A local economic development organization that will receive $1 million to help purchase a building in Rapid City's 'Innovation District' to serve as the headquarters for the South Dakota Defense Institute.

Bill Even

South Dakota's Commissioner to the Governor's Office on Economic Development, who provided more details on the physical construction of the space for the South Dakota Defense Institute.

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What they’re saying

“We announced the creation of the South Dakota Defense Institute. And this is a big step in hanging meat on the bones of the commitment I made in the State address… The national defense would be South Dakota's next big industry.”

— Governor Larry Rhoden, Governor of South Dakota

“The School of Mines and Western Dakota Tech have been pretty integral in figuring out how we really jump start the innovation district in downtown Rapid City with the natural focus on national defense. And so we've identified some properties and we'll be working closely with Elevate to secure those as well.”

— Bill Even, South Dakota's Commissioner to the Governor's Office on Economic Development

What’s next

The governor's office said additional details on staffing, timelines and programming for the South Dakota Defense Institute will be released as the institute's launch progresses.

The takeaway

South Dakota is making a strategic investment to position itself as a hub for the national defense industry, leveraging partnerships between businesses, education, and government to help local companies compete for lucrative federal defense contracts. This represents a significant economic development opportunity for the state.