Leola Data Center west of Leola
A company wants to build one 50 MW data center building on about 9 acres west of Leola, next to an MDU substation. The state approved MDU as its power company. McPherson County has not yet decided on the permit.
Where things stand: State regulators approved MDU as the power company in Sept. 2026. The county permit is still pending after delays in Aug. and Sept.
🕒 Latest update (Sept 11, 2026): Public Utilities Commission approved a settlement making MDU the power company. It ends if the county permit is not granted.
What we know
- 📍 WherePart of the east half of Section 28, Spring Township (T126N R68W), on 358th Ave near 116th St, south of U.S. Highway 10, about four miles west of Leola, next to an MDU substation, Unincorporated McPherson County, McPherson County
- 🏢 CompanyLeola Data Center LLC
- 🌳 Size9 acres
- ⚡ Power it needs50 megawatts (about as much as 40,000 homes)
- 🔌 Where the power comes fromMontana-Dakota Utilities (MDU), buying power from the regional market; the developer pays for its own substation
- 💧 Water400 gallons a day
- ❄️ CoolingDry coolers with a sealed closed loop, no cooling tower (developer)
❓ Still unanswered
Nobody has answered these in public yet. Can you help find out?
- When will the McPherson County Board of Adjustment vote on permit 26-CUP-04? 🙋 I'll find out
- Who is the tenant or customer for the data center? 🙋 I'll find out
- How many diesel backup generators are planned? 🙋 I'll find out
- Will the promised community payments be in a signed agreement? 🙋 I'll find out
What happened so far
- Aug 5, 2024Developer asked state regulators to let MDU serve the site instead of FEM Electric.
- Dec 2024After a first permit request, the county paused data centers and later wrote data center rules.
- July 22, 2026County posted notice of a hearing on permit 26-CUP-04.
- Aug 11, 2026County Board of Adjustment held the hearing but postponed a decision until promised payments are put in written agreements.
- Sept 2026County planning and zoning board again put off action on the permit.
- Sept 11, 2026Public Utilities Commission approved a settlement making MDU the power company. It ends if the county permit is not granted.
Local votes and rules
📌 Other
The county board heard the permit request (26-CUP-04) for the Leola data center and then postponed its decision after a closed session. No new date was set.
📜 Data center rules
The county drafted changes to its data center rules (Ordinance 2026-1). The draft keeps the one-mile buffer from churches, schools and homes, and adds noise limits and buffer yards. We did not find whether it was adopted.
📜 Data center rules
The county added data center rules (Chapter 5.33, Data Processing Centers) to its zoning code. Data centers need a conditional use permit and must be one mile from any church, school or home.
⏸️ Pause on new data centers
Commissioners paused data center permits until the county wrote data center rules. Those rules were adopted in 2025.
An aerial photo of the area.
Where this comes from
- August 11th Notice of Hearing (26-CUP-04) · McPherson County · July 22, 2026
- State regulators, county board to decide Leola Data Center's fate · KELOLAND News (via Yahoo) · Sept 2, 2026
- PUC docket EL24-027: Leola Data Center LLC petition · South Dakota Public Utilities Commission · Sept 11, 2026
- South Dakota PUC Approves MDU Power Service for Proposed Leola Data Center · Northeast Radio SD · Sept 2026
- McPherson County postpones approval of Leola Data Center conditional use permit · Aberdeen Insider · Sept 4, 2026
- Leola Data Center community fact sheet · Leola Data Center (developer) · 2026
- BLM PLSS: Section 28, T126N R68W (used for the map pin) · Bureau of Land Management · Oct 8, 2026
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