Aberdeen City Council Special Meeting on Data Centers - August 31, 2026

This was the second of three informational meetings held by the Aberdeen City Council to gather input on a potential ordinance to limit, prohibit, or regulate data centers within city limits. The meeting focused on business and commercial interests, featuring a detailed economic presentation from the Aberdeen Development Corporation (ADC) and public comments on health, wildlife, agriculture, and housing. No formal votes were taken; the meeting is part of a broader process to inform ordinance drafting.

Public Comments & Testimony

• Peg Kudemarsh expressed frustration that Aberdeen, as the third-largest city in South Dakota, lacks a local health department. She described unsanitary conditions in a grocery store's public bathrooms and called for city action to enforce health regulations. She referenced past complaints and urged the council to address the issue.
• Janelle Meyer raised concerns about data centers' impacts on wildlife and agriculture. She cited specific economic figures: pheasant hunting generates $250–287 million annually, and deer hunting over $160 million. She argued that data center noise, low-frequency vibrations, and security lighting disrupt pheasant nesting, deer travel corridors, and cattle health, citing cases of stillborn calves and weight loss. She urged strict regulations on infrastructure like chillers.
• Scott Soltz, speaking from a farm business perspective, questioned potential electrical load controls during harvest season when grain dryers and fans operate. He asked how Aberdeen would benefit from a data center and who might face shutdowns if power demand exceeds supply.
• Melanie Bobby (property manager) voiced concern about housing affordability. She noted existing housing shortages and asked whether a data center ordinance could allocate some tax revenue or developer contributions to support vulnerable residents who may not be aware of the public process.

Discussion Items

Presentation by Tim Hannigan, CEO of Aberdeen Development Corporation

• Hannigan stated the ADC's position: they support adopting a data center ordinance that (1) protects citizens, (2) creates certainty for developers, and (3) allows Aberdeen to capture opportunity when a responsible project meets standards. He emphasized that no specific pending projects exist, but the ordinance would filter future proposals.
• He presented hypothetical economic benefits based on a 10-megawatt (MW) data center, derived from industry averages and community examples:
  • Construction phase: $113 million in construction investment + $150 million in IT equipment = $263 million total. Estimated 86 jobs per year over 2–4 years (45 direct construction, 27 supplier-supported, 14 from additional spending), with $5.9 million in direct trades payroll.
  • Ongoing operations: 5 direct data center jobs and 7 indirect jobs (12 total), with wages ~55% above county average. Plus $12 million annual direct operating activity, leading to $33.6 million total economic activity per 10 MW.
  • Sales tax: Potential $3 million per 10 MW from initial equipment purchase (2% of $150 million).
  • Property tax: Estimated $400,000 per 10 MW, with breakdown: $168,000 to schools, $136,000 to city, $95,000 to Brown County.
• He cited examples from Papillion, Nebraska (multiple data centers near Interstate 80) and Quincy, Washington (data centers providing over 60% of property tax revenue, funding community amenities). He noted Quincy has no special ordinance; the city treats data centers like any other industrial use.
• He outlined a four-part balance: developers need clear rules; residents need protections; utilities must ensure reliability; and community benefit must be demonstrated. He advocated for a process of listening, regulating, inviting projects, negotiating specifics (road agreements, workforce partnerships), and verifying compliance.
• Council Q&A:
  • Asked about "reasonable regulations," Hannigan referred to a draft ordinance in the meeting packet as a starting point.
  • Councilman Edconnor asked about the 10 MW baseline; Hannigan confirmed it was for mathematical ease and noted that actual project sizes would vary.
  • Deputy Mayor Johnson requested clarification on types of data centers (crypto mining, AI/hyperscaler, enterprise storage) and referred to the prior meeting's expert for details.
  • A council member inquired about vetting foreign funding sources (e.g., Chinese, Russian, Israeli interests). Hannigan said ADC conducts due diligence on companies and would consult legal counsel on state laws; he recalled a case in Grand Forks involving Chinese land purchases near an Air Force base.

Key Outcomes

• No votes or formal decisions were made; this was an informational session only.
• The council announced the third and final informational meeting on Monday, September 14, 2026, at 5:30 PM at the Aberdeen Civic Theater (old Central High School). This meeting will be dedicated to receiving public input on the potential data center ordinance, with a larger venue to accommodate more citizens.
• The council and ADC will use input from all three meetings to draft an ordinance for referral to the planning commission. The ADC's presentation slides will be shared with the council.