Commission schedules hearing on AI Data Centers

The Lincoln County Board of Commissioners met Tuesday, January 27 in the Lincoln County Boardroom. With all members present, the commission heard agenda items.

A public hearing was held to consider an application for a temporary on-sale Wine and Off-Sale Wine and Malt Beverage license to operate outside the municipality for Gist Wine Shop for events to occur on February 20th, 21st, and 22nd, 2026. 

Located at the Landscape Garden Center, 47238 271st, Sioux Falls, SD 57108, TRACT 1 FOSTER ADD E1/2SW1/4 21-100-50 Lincoln County, SD. Applicant, Mel Guse was present to give details of her event. 

“I own Gist Wine Shop in downtown Sioux Falls. Landscape Garden is doing a new annual event called Outdoor Edit. They’ve invited other vendors and they wanted a beverage vendor there just to be able to relax and enjoy space in their garden center during the winter months,” she said. 

With no proponents or opponents to the application, Chairwoman Tiffani Landeen closed testimony. Motion to approve by Betty Otten, seconded by Joel Arends, motion carried.

Chief Civil Deputy State’s Attorney, Drew DeGroot was present for a public hearing regarding the intent to enter into a lease with Skattum LLC for a term exceeding 120 days and an amount exceeding $500.00 for Hanger R5 at the Marv Skie/Lincoln County Airport. 

“As I read through this lease, it says you’re going to increase this thing one cent every two years which means it’s a declining increase over a 20-year period. This thing is written in favor of the leasee’s over the taxpayers. The first year it’s 1.25% and by the end of the 20 years it’s down to .9% so instead of a percentage we are using an amount. The value of the land goes up every year, I don’t think we should be going backwards,” he said. 

Motion to approve by Schmidt, seconded by Otten, motion carried.

Todd Meierhenry was present for board discussion with possible action to set a Public Hearing and publish notice for potential 501(c)(3) Bond Issuance for Augustana University. 

“Augustana University would like to county to act as a conduit issuer. The university can’t issue their own bonds, tax exempt under federal law they have to go to a city or county to act as the conduit issuer. Under state law, the county can’t pledge any taxing power, any of their property, any of their money, they just act as the conduit issuer,” he said. 

Motion to approve, Otten, seconded by Jim Schmidt, motion carried.

Commissioner Joel Arends requested board discussion and possible action to set a hearing date and publish notice of the hearing on a resolution establishing a moratorium on the permitting and construction of AI hyperscale data centers pursuant to SDCL 11-2-10 and a policy discussion on the merits of AI hyperscale data centers. 

“I’m calling on the commission to enact a temporary one-year moratorium on new construction of AI hyperscale data centers here in the county,” Arends said. 

Arends reported to the commission and audience that anything over 100 megawatts of electric use is considered hyper scale. 

“I’m inclined to deviate down to 50 megawatts because there is no traditional data center here in Lincoln County using that much energy, and anything above that would probably be out of the ordinary and thus right for this discussion,” he said. 

Arends believes the one year moratorium will allow the commission time to properly investigate the high electricity costs, environmental concerns, and lack of transparency these projects can bring. 

“It’s very rare here in America today that you can get Democrats, Republicans, and people all across the political spectrum, old and young, rich and poor to agree on anything these days, most people can’t agree on much, but what seems to have happened here locally, but also sweeping the nation, there seems to be broad consensus in many communities that it’s just time to hit the pause button while we can figure out some sensible regulations on how to move forward,” Arends said. 

“I am in the boat that a temporary pause gives us a chance to set our own standards, make sure they’re in place, our own zoning, our own infrastructure needs, and our rules, and our expectation. I think that it does need to stay here and we should have some local control over what happens in our county. I’m a pro-business person, I’m not an anti-data center person, but I also think that the businesses want clear rules. They don’t want uncertainty, they don’t want to spend a bunch of money planning and then not be able to follow through with their project,” said Chairwoman Landeen. 

Chris David from Sioux Falls stood to speak. 

“I appreciate the moratorium as someone who is in Sioux Falls but is a Lincoln County resident and watching what each county does and with possible moving to a different location and buying a house, we are watching what Lincoln County does over Minnehaha County,” she said. 

Fifteen residents stood to speak in support of a one-year moratorium and a public hearing on the topic. Motion to set the public hearing at the next evening meeting in February by Arends, seconded by Otten, motion carried.