The City Council in Aberdeen, South Dakota, has passed a temporary resolution halting the issuance of local permits for data centres while it undertakes a review of local planning, zoning and permitting arrangements in light of recent state legislation.
Why the pause?
Under the council’s resolution — filed as RESOLUTION NO. 26-07-04R — members say new state law effective 1 July 2026 gives local authorities explicit power to adopt measures affecting the construction, development and operation of data centres. The council concluded its current regulatory framework may not sufficiently address the specific impacts such facilities could have on the city.
The resolution sets out a series of preliminary findings by the council, including that planning, zoning and building officials are presently constrained in how they can evaluate permit applications for data centres, which could create uncertainty for applicants and risk stranded investments in real property. To address those concerns the council decided to suspend local permitting for such projects on a temporary basis while it carries out further study.
"an emergency stopgap resolution is necessary and reasonable to preserve the status quo"
What the council will do next
The moratorium is intended to buy time for the city to:
- study and assess the implications of data centres for the city’s 2019 comprehensive plan;
- review and, where necessary, propose amendments to zoning and building ordinances;
- seek public input from residents, businesses and representatives of the data-centre sector.
Council members framed the measure as a short-term, precautionary step to ensure that any future local permitting or licensing of data-centre developments is underpinned by considered policy and clear regulations.
Key elements of the resolution
| Item | Detail from resolution |
|---|---|
| Authority cited | State statute effective 1 July 2026 |
| City finding | Current controls may not address unique impacts of data centres |
| Purpose | Allow study and public engagement before issuing local permits |
The council’s action does not itself adopt permanent land-use rules; instead it temporarily prevents the granting of local permits or licences related to the construction, development or operation of facilities that meet the statutory definition of a data centre until the review is completed and any proposed regulatory changes are considered.
Residents and local stakeholders seeking further details should refer to the city council’s published resolution and future council papers, which will set out the proposed process and any timetable for the review and for drafting potential ordinance amendments.
