US Cities Draft New Regulations for Data Center Growth
Municipal leaders in Sioux Falls, Sioux City, and San Antonio are developing zoning and oversight frameworks to manage the environmental and infrastructure impacts of expanding data centers.
City officials in several U.S. cities are proactively establishing regulatory frameworks to manage the rapid expansion of the data center industry. In Sioux Falls, South Dakota, the Sioux Falls City Council created a Regulatory Oversight Committee to study local, state, and federal laws. The committee, which includes Councilors Sara Pankonin, James Oppenheimer, and Rich Merkouris, is evaluating the strain on water and electricity supplies caused by hyperscale projects. The group will hold public meetings in November and January before presenting final ordinance recommendations by January 12, 2027.
Similarly, Sioux City, Iowa, is addressing a gap in its current zoning code. Planning Manager Chris Madsen is drafting ordinances to regulate rural and adaptive reuse projects, consulting MidAmerican Energy on power requirements. A draft ordinance is expected by October 27.
In San Antonio, Texas, the City Council will vote on October 29 between two regulatory proposals. One would automatically permit data centers in specific districts with a 500-foot buffer from residential and medical facilities, while the other would require a full council vote and public comment. Councilman Ric Galvan is advocating for the latter, as well as a requirement that facilities use only recycled water to protect local resources. San Antonio currently has nearly 30 data centers within its limits.
