Deuel County Zoning Board declines six‑month moratorium on data centers after developer presentation

CLEAR LAKE, S.D. — The Deuel County Zoning Board on Feb. 3 rejected a proposal to place a six‑month moratorium on data-center development, saying the county will instead continue ordinance work and await state decisions that could affect incentives.

Martin Vega, representing Applied Digital, told the board the company’s current plan is for two buildings totaling about 430 MW and said developers prefer clear zoning standards so site plans and public review can proceed predictably. Vega said infrastructure costs would be paid by the developer and clarified that a widely cited $16 billion estimate includes customer‑owned computing equipment, not just construction; he also said construction materials would remain taxable and that data‑hall components are the items eligible for sales‑tax exemption.

Residents urged caution and asked for a moratorium to allow more public meetings, environmental review and ordinance drafting. Val Trooien and others said Scandinavian Township and nearby areas are approaching capacity for industrial development and asked the county to ensure local voices are fully considered.

Board member Jay Grabow moved for a six‑month moratorium, seconded by Kevin DeBoer. The motion failed on a roll call (Dennis Kanengieter No; Mike Lammers Yes; Kevin DeBoer No; Jay Grabow No; Chairman Mike Dahl No).

Board members noted the process depends in part on whether the state approves a sales‑tax exemption for data‑hall equipment; if the state approves the exemption the county said it would proceed with a more detailed public process and stakeholder outreach. Some board members suggested drafting general baseline ordinances as a proactive framework whether or not a state exemption is granted.

The motion’s defeat means developers and county staff can continue ordinance drafting and public engagement; the board did not adopt a pause on applications for data centers.