City Council announces committee to review data center regulations

The Sioux Falls City Council will convene the Regulatory Oversight Committee to study potential regulations related to data center development and operations within Sioux Falls. The committee will review existing regulatory frameworks, gather public input and develop recommendations for consideration by the full City Council.

The Regulatory Oversight Committee serves in an ad hoc capacity and is tasked with reviewing, studying and recommending potential changes to city ordinances. As part of this effort, the committee will examine local, state and federal laws affecting data centers, discuss the various types of data center facilities, hear public concerns and ideas and evaluate potential ordinance proposals. The committee is expected to present a report and/or ordinance recommendations to the City Council no later than Tuesday, Jan. 12, 2027.

"Data centers represent an emerging and evolving area of development that carries important considerations for our community," City Council Chair Rich Merkouris said. "This committee will provide a focused forum for gathering information, engaging the public and carefully evaluating potential regulatory approaches before any recommendations are made."

Committee members include Councilors Sara Pankonin, James Oppenheimer, Ryan Spellerberg and Rich Merkouris.

The committee's work will include:

• Reviewing current local, state and federal laws and regulations impacting data centers.
• Discussing definitions and distinctions among different types of data centers, including modular, large-scale and hyperscale facilities.
• Soliciting and considering public feedback regarding potential regulations.
• Evaluating proposed ordinances and regulatory options.
• Developing recommendations for city council consideration or, if consensus is not reached, presenting a report outlining available options.

All committee meetings will be open to the public and will include opportunities for public input. Meetings will be held at Carnegie Town Hall, 235 W. 10th St., on:

• Monday, Nov. 9, at 6 p.m.
• Monday, Nov. 30, at 6 p.m.
• Monday, Jan. 4, 2027, at 6 p.m.

In addition, the Sioux Falls City Council and Lincoln County Commission will hold a joint meeting on Tuesday, Oct. 27, to discuss data center-related concerns and potential regulations.

Sioux Falls residents, businesses and other interested stakeholders are encouraged to participate throughout the process by attending meetings, submitting comments and sharing proposed ordinance language or supporting materials for the committee's consideration. All feedback submitted will be shared with committee members and reviewed as part of the committee's process. Proposed ordinances and supporting resources must be submitted to the committee by Friday, Nov. 27, 2026, for consideration.

The committee will present its report and any recommendations during the city council informational meeting on Tuesday, Jan. 12, 2027.

For more information, visit siouxfalls.gov/ROC