Opinion: South Dakota’s tech future depends on powering next wave of innovation

America is in a race, one that will define global economic leadership for the next decade. China is aggressively

positioning

itself as a center for artificial intelligence development and deployment. The winner will capture enormous competitive advantages in innovation, job creation and geopolitical influence. But there’s a detail often overlooked in this high-stakes competition. None of it happens without reliable critical infrastructure, such as power and data centers.

Winning the AI race is fundamentally about establishing the critical infrastructure that powers innovation. AI systems rely on data centers, and data centers require electricity. If the United States intends to remain competitive, we must be able to build and power that infrastructure efficiently and affordably. That requires thoughtful policy, modernized permitting and a clear commitment to growth.

Data centers are not secondary to the tech economy. They are the foundation. The nation that builds and controls the most advanced, reliable and affordable data center infrastructure will lead in AI development and deployment.

Here in South Dakota, we have the essential components to build this critical infrastructure. Our affordable energy, vast land and strong workforce create the necessary conditions for establishing data center facilities that can compete globally. Tech employment in our state has grown

17 percent

in recent years, outpacing many parts of the country. This is a signal that South Dakota can support and sustain the specialized environment required for advanced infrastructure development.

But having these advantages is not enough. The window of opportunity is finite, and other states are mobilizing their own competitive advantages. If we want South Dakota to be where America builds the critical infrastructure that powers the AI future, we must act decisively. Supporting and enabling this infrastructure development is not a favor to industry. It is imperative for our state and our nation.

Establishing critical data center infrastructure in South Dakota delivers immediate and long-term benefits for our communities. Big Watt alone currently contributes roughly $900,000 a year in kilowatt-hour taxes directly to local schools and could eventually provide more than $160 million annually as future phases come online. Its payroll already totals several million dollars a year, with nearly all staff drawn from within the region. This kind of investment can strengthen schools, support local businesses and create lasting economic opportunity.

Additionally, construction and development of this infrastructure alone can support hundreds of electricians, contractors, engineers and skilled trades workers. These are good-paying jobs that circulate dollars through local businesses. For rural parts of our state, that kind of investment can be transformative.

At Oahe Electric Cooperative, we see how thoughtful planning and load growth can support grid upgrades while protecting affordability for the families and small businesses we serve. We also know South Dakota is already a leader in renewable energy, with 29 wind projects totaling 3,476 megawatts, along with growing solar capacity and grid storage resources. As demand for electricity grows, we are taking on new generation responsibly through an all-of-the-above energy strategy that rests on a reliable foundation of natural gas and coal, accompanied by wind and solar resources. Just as importantly, data centers should be required to pay the upfront costs associated with their onboarding so existing consumers are not left subsidizing the infrastructure needed to support large-scale new load. When planned responsibly, this approach can support grid upgrades and new generation in ways that maintain reliability and protect affordability for South Dakota’s households and small businesses.

The broader significance is strategic. By establishing critical infrastructure for the technology economy, South Dakota positions itself as essential to American competitiveness. We attract complementary investment, develop specialized workforce expertise and build advantages that strengthen our state’s position in the global economy for decades. If our policies create uncertainty or make infrastructure development

financially unworkable

, capital will flow to other states where the path is clearer and the commitment is stronger. We must transform from a state watching the technology race to a state where the race is won.

Our state must act now to establish the critical infrastructure that will power American innovation for the next decade. This is our moment to position South Dakota as essential to winning the technology race. With practical regulations and a clear commitment to supporting data center infrastructure development, we can ensure that South Dakota is where America builds the advanced infrastructure that leads the world in artificial intelligence. The technology shaping the global economy will be powered by the infrastructure we build today. South Dakota can be that foundation.