Massive data centers have eyes on South Dakota

Massive data centers used for cloud computing and artificial intelligence are consuming enormous amounts of energy, and developers are eyeing South Dakota as a potential location, regulators say. 

These “hyperscale data centers,” or “hyperscalers,” are designed to handle immense computing demands and are often operated by tech giants. The centers are characterized by their large size — often tens of thousands of square feet — and thousands of computer servers that require significant energy to operate. 

Nick Phillips with Applied Digital in Texas, a developer of the centers, highlighted South Dakota’s appeal: a cold climate that cuts down on cooling a room full of hot servers, and abundant wind energy that’s considered one of the most cost-effective renewable energy sources, which can help keep operating costs down. 

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