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Record of Proceedings

2026-08-17 Aberdeen City Council Meeting: Data Center Industry Discussion and Budget Preview

City Council — Monday, August 17, 2026
BodyAberdeen, South Dakota
SessionCity Council
DateMonday, August 17, 2026
StatusFILED
Video Record
0:00 / 2:01:13

Transcript — Verbatim
1:08

All right, it's 5 30, so let's call the order this meeting.

1:11

Jordan, would you start us off with a roll call?

1:14

Please respond by stating present.

1:17

Councilmember Ronane.

1:19

Present.

1:20

Foberg.

1:22

We belt present.

1:23

Ward.

1:24

Present.

1:24

Johnson.

1:25

Present.

1:26

Econger.

1:26

Present.

1:27

Nelson.

1:28

Present.

1:28

Normstrom.

1:29

Present.

1:29

Mayor Shannon.

1:30

Present.

1:30

Please stand with me for the pledge.

1:37

We can sue the flag of the United States of America.

1:40

And choose a republic.

1:58

We have a couple of guests joining us by Zoom, so we will roll through all of the new business items until we hit 6 p.m.

2:06

at which time they will join us.

2:07

We should be able to get through a majority of them, I would think, and then we'll move into the discussion about data center at 6 p.m.

2:15

with the industry representatives.

2:18

One more modification to make to the agenda.

2:21

Um item seven I had a slight clerical error.

2:39

So move.

2:47

Aye.

2:48

Post name.

2:50

Motion carries.

2:51

We've got uh minutes to approve from our previous meeting, which took place on August third, as well as uh amended payroll section.

3:00

Um some of those information was not available at the time of the meeting, so it has been added after the fact.

3:08

I take a motion to approve the minutes.

3:10

Move to approve.

3:13

Motion Libelt, second knobstrip, all in favor, please say aye.

3:16

Aye.

3:17

Aye.

3:19

Motion carries.

3:20

We've got a speaker here tonight for open forum.

3:23

Generally speaking, we allow two minutes in duration for each speaker, but since we've just got one and it's a big topic, Janelle Meyer, if you wouldn't mind making your way to the little podium.

3:35

Are you interested in speaking?

3:37

I thought it was after we could listen, but limit yourself to four minutes.

3:44

We'll give you double the time of normal.

3:47

We do, I would like to suggest and remind everybody that you know the portion of the meeting in which we will be talking about the data center in its exclusivity here today will be for the people in the industry and a w a joy adjacent industries, which will be impacted by data centers.

4:07

And next meeting will be for business owners, and then we're going to have a big meeting where anyone from the public can come and speak their mind on data centers, which will take place on September 14th, and we'll kind of gauge how many people will probably need a a little bit bigger space at that time.

4:27

Welcome.

4:28

Yeah.

4:28

Well, my first question is I didn't get to get all the insight, but where is this data center going to be?

4:37

And the format of this isn't a QA type of a thing.

4:40

You've got four minutes to express yourself.

4:42

Um as of now, there is no concrete data center.

4:45

We're trying to get together an ordinance um that will be efficiently allow Aberdeen to have some guardrails for a future potential data center, which may or may not come down the road.

4:57

Well, that was my concern.

5:00

I believe data centers do not belong in the middle of farmland.

5:03

Land rezoned to industrial vote.

5:07

I don't know if it was an uh agriculture to industrial.

5:12

We do want and I would like to insist on one well-written complete and research ordinance, community benefits agreed.

5:21

I'd like no use of public grid, noisy equipment and homes, restriction on water, and waste wastewater use, large vegetated buffer, limits on size, build building size and expansion, water usage, power demand, strict noise limits, property values, environmental impact, traffic and construction, tax and revenue, how many permanent jobs, endangered species, water dick, water and forever chemicals, chemical discharge, public disclosure, hazardous material storage, measure of the impacts, the data centers, heat plumes, and noise on livestock, behavior milk and production and fertility, increased rates of respiratory sleep or distress disorders, light pollution, protection, mandates dark sky, compliant downward facing red lightings, power limits on high users, established hard caps on peak, megawatt consumptions during high demands, electrical infrar infrastructure cost, hold data centers financially liable for road damage caused by having just heavy destruction and sound study some limitations.

Discussion Breakdown — Share of Meeting
Technology and Innovation████████████████████████████████32%
Engineering And Infrastructure█████████████████17%
Environmental Protection█████████████13%
Procedural███████████11%
Water And Wastewater Management██████6%
Energy Management██████6%
Community Engagement████4%
Economic Development███3%
Budget Equity Analysis███3%
Summary of Proceedings

2026-08-17 Aberdeen City Council Meeting: Data Center Industry Discussion and Budget Preview

The Aberdeen City Council met on August 17, 2026, at 5:30 PM to conduct routine business, approve a series of pay requests and change orders for city projects, and hold a special 6:00 PM session with industry representatives to discuss potential data center development. The meeting included public testimony, expert presentations, and a preview of the proposed 2027 city budget.

Consent Calendar

  • Approved a community event permit for the Red Rooster, a one-day alcohol license for the Storybook Land Uncorked event (September 10), and a street closure for the Aberdeen Marching Band Festival. (Motion carried unanimously)

Public Comments & Testimony

  • Janelle Meyer spoke during Open Forum (four minutes allowed). She expressed strong opposition to placing data centers in farmland, citing concerns about noise, water usage, environmental impact, property values, traffic, and light pollution. She demanded a public vote before any ordinance is passed and called for strict guardrails including no use of public grid, vegetated buffers, noise limits, and limits on size and water usage. She referenced negative experiences in other communities (Ellendale, Allen Dale).

Discussion Items

  • Data Center Industry Presentations and Q&A (6:00 PM session):

    • Scott Sandal (Senior Executive, Sunbird Software; 30-year IT veteran) presented an overview of data center evolution, types (traditional vs. AI), power density (KW per rack), cooling technologies, noise/water concerns, and the need for transparency. He emphasized the importance of community benefits and breaking down project types (enterprise vs. AI vs. crypto). He suggested that a reasonable starting conversation for a community like Aberdeen might be around 5 megawatts. In Q&A, he discussed “mission creep” (preventable via conditional use permits), the equivalence of 5 MW powering ~4,000 homes, and the trend toward developers being more transparent and contributing to communities.
    • Michael Feinblatt (Environmental Professional, TRC Companies; 35 years experience) presented on noise and vibration mitigation for data centers. He highlighted low-frequency noise and “pure tones,” the need to regulate hyperscale data centers with on-site power generation more strictly than smaller ones, and the importance of distance, natural buffers, equipment selection, and site design. He recommended separate noise limits based on adjacent zoning and psychological effects of screening.
    • Tom Glanzer and Brian Kemnett (Northwestern Energy) discussed utility capacity. They stated that Northwestern Energy’s priority is serving legacy customers; a new 131 MW gas-fired generation station is planned for southwest Aberdeen (not for data centers, but for baseload). They highlighted that rate structures prevent cost-shifting to residential customers, and South Dakota’s Senate Bill 135 (“data center bill of rights”) aims to hold ratepayers harmless. In Q&A, they noted that the capacity in Aberdeen is strong due to existing investments, but any large new load would require careful partnership and PUC approval.
    • Mark (unclear title, possibly a legislator or council member) briefly explained Senate Bill 135, passed unanimously, which requires data center developers to bear infrastructure costs and protects South Dakotans from rate increases.

  • City Manager’s Report on 2027 Budget:

    • City Manager Dave presented staffing proposals: add 2 firefighter/paramedics to fully staff Station 2’s ambulance (24/7); add 1 finance department staff (due to increased responsibilities managing $275M in assets); and add 2 pump department employees (net +2) to replace retiring staff and enable valve maintenance programs (total public works changes: +3 FTEs, but one replacement). The budget also includes flexibility to hire extra staff at water plants when qualified candidates are available.

Key Outcomes

  • Approved All Pay Requests and Change Orders (roll call votes; some abstentions noted):

    • WRF facility improvement pay request: $1,861,000 to PKG Contracting (46% complete).
    • North Dakota Roadway Improvements pay request: $175,152 + change order $81,240 (final closeout pending).
    • Lime Slayer replacement pay request: $16,580.70 (insurance/bond payment; installation at year-end).
    • Sanitary sewer lining improvements pay request: $2,930.13 (negative change order -$27,391).
    • Water tower and transmission line pay request: $574,513 to Domy Construction.
    • Water treatment plant roof improvements pay request: $199,385 to Skinner Roofing.
    • Public Works Maintenance Building change order: $98,034 to Quest Construction (for upgraded shop air conditioning) and pay request: $52,250 (mobilization).
    • Airport terminal expansion: four items totaling ~$206,000 (Helms invoices, Quest change order and pay estimate).
    • Airport SRE building expansion design invoice: $8,433 to Helms.
    • Airport weather camera system payment: $14,872 (75% FAA reimbursement).
    • Authorized city manager to execute financial agreement for AIP 58 (design for SRE building expansion).

  • Liquor License Transfers:

    • Approved transfer of retail on-sale liquor and video lottery license to Yelis Shrine Organization (Councilmember Ward abstained).
    • Approved one-day on-sale liquor license for Storybook Land Uncorked (September 10).

  • Claim and Payroll Approval: After initial roll call lacked majority for payments to PKG and Banner Associates (due to abstentions), a subsequent vote was taken on those specific items, which passed.

  • Data Center Ordinance: No formal action taken; the session was an educational discussion to inform future ordinance development. A public hearing for general citizens is scheduled for September 14.

  • Next Steps: City Manager will present capital improvement program details at the next council meeting.

Meeting Transcript

All right, it's 5 30, so let's call the order this meeting. Jordan, would you start us off with a roll call? Please respond by stating present. Councilmember Ronane. Present. Foberg. We belt present. Ward. Present. Johnson. Present. Econger. Present. Nelson. Present. Normstrom. Present. Mayor Shannon. Present. Please stand with me for the pledge. We can sue the flag of the United States of America. And choose a republic. We have a couple of guests joining us by Zoom, so we will roll through all of the new business items until we hit 6 p.m. at which time they will join us. We should be able to get through a majority of them, I would think, and then we'll move into the discussion about data center at 6 p.m. with the industry representatives. One more modification to make to the agenda. Um item seven I had a slight clerical error. So move. Aye. Post name. Motion carries. We've got uh minutes to approve from our previous meeting, which took place on August third, as well as uh amended payroll section. Um some of those information was not available at the time of the meeting, so it has been added after the fact. I take a motion to approve the minutes. Move to approve. Motion Libelt, second knobstrip, all in favor, please say aye. Aye. Aye. Motion carries. We've got a speaker here tonight for open forum. Generally speaking, we allow two minutes in duration for each speaker, but since we've just got one and it's a big topic, Janelle Meyer, if you wouldn't mind making your way to the little podium. Are you interested in speaking? I thought it was after we could listen, but limit yourself to four minutes. We'll give you double the time of normal. We do, I would like to suggest and remind everybody that you know the portion of the meeting in which we will be talking about the data center in its exclusivity here today will be for the people in the industry and a w a joy adjacent industries, which will be impacted by data centers. And next meeting will be for business owners, and then we're going to have a big meeting where anyone from the public can come and speak their mind on data centers, which will take place on September 14th, and we'll kind of gauge how many people will probably need a a little bit bigger space at that time. Welcome. Yeah. Well, my first question is I didn't get to get all the insight, but where is this data center going to be?

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