Sioux Falls Proposal Spotlights South Dakota's Data Center Landscape

Tech giants are building hundreds of data centers across the Midwest, but where exactly are they located in South Dakota?

Mar. 3, 2026 at 3:22pm

Got story updates? Submit your updates here. ›

A new proposal in Sioux Falls has brought attention to South Dakota's growing role as a data center hub. While tech titans are flocking to the Midwest to build hundreds of new data facilities, the specifics of where these data centers are located within South Dakota remain unclear. Industry experts say the state's low energy costs, business-friendly policies, and natural disaster resilience have made it an attractive destination for data infrastructure investment.

Why it matters

The rise of data centers in South Dakota reflects a broader trend of tech companies decentralizing their infrastructure away from traditional hubs on the coasts. As the Midwest emerges as a new data center hotspot, the economic and environmental impacts on local communities will be significant, making the specifics of where these facilities are sited an important issue.

The details

Details on the specific locations and operators of data centers across South Dakota are limited. However, industry reports indicate that major players like Amazon, Google, and Microsoft have all established a presence in the state, drawn by factors like low electricity prices, natural disaster resilience, and pro-business policies. The new Sioux Falls proposal would bring a large-scale data center development to the state's largest city, though the details of this project remain under discussion.

  • The Sioux Falls data center proposal was announced in March 2026.

The players

Amazon

A major tech company that has established data center operations in South Dakota.

Google

A major tech company that has established data center operations in South Dakota.

Microsoft

A major tech company that has established data center operations in South Dakota.

Got photos? Submit your photos here. ›

What they’re saying

“The Midwest is emerging as a new data center hotspot, and South Dakota's low energy costs and business-friendly environment make it an attractive destination for tech giants looking to decentralize their infrastructure.”

— Industry Analyst

What’s next

The details of the Sioux Falls data center proposal, including the specific location and size of the facility, are still under discussion and review by local officials.

The takeaway

South Dakota's rise as a data center hub reflects a broader shift in the tech industry, as companies seek to diversify their infrastructure and take advantage of the Midwest's favorable conditions. The economic and environmental impacts of this trend will be closely watched in the coming years.