Aberdeen extends data-center permit freeze as water-capacity review continues
Aberdeen, South Dakota · Meeting date: October 19, 2026 · Published: October 20, 2026
Aberdeen City Council has unanimously prolonged its moratorium on new data centers from 18 November 2026 to 1 July 2027, or until permanent zoning rules take effect. The measure explicitly responds to concerns that existing regulations do not adequately address data-center demands on water supply and wastewater treatment capacity.
Key points
- The unanimous resolution bars new local permits or licences for data-center construction, development, expansion or operation within Aberdeen city limits until 1 July 2027, unless permanent rules take effect first.
- Council unanimously amended the resolution to include crypto-mining facilities in the moratorium.
- The city said it needs more time to study infrastructure impacts including water supply, wastewater capacity, electric infrastructure, emergency services, noise and land-use compatibility.
- Applications may still be received and retained during the moratorium, but approvals are deferred to the extent allowed by law; valid existing permits, vested rights, lawful existing operations and maintenance work are protected.
- Separately, the council approved a USD2.225 million payment for the USD91.759 million Water Reclamation Facility Phase 1 project, which was reported 51% complete including stored materials.
Full report
Aberdeen City Council has extended its moratorium on new data-center permits until 1 July 2027, giving the South Dakota city additional time to devise permanent rules for facilities whose water-supply and wastewater-capacity demands are not fully addressed by current regulations.
The council unanimously adopted Resolution 26-10-01R on 19 October, extending the freeze from its prior expiration date of 18 November 2026. The moratorium can end earlier if an ordinance regulating data centers becomes effective.
The resolution prohibits city officials from issuing local permits or licences authorising new construction, development, expansion or commencement of operations for a data center within Aberdeen’s corporate limits. It defines a data center as property principally used as a centralised repository for dissemination, management, processing and storage of electronic data and information.
Councilmember Ronayne successfully moved an amendment to include crypto-mining facilities within the restriction. The amendment and the underlying resolution both passed unanimously.
The city’s resolution says Aberdeen’s present regulations may not adequately address data-center demands on water supply, wastewater capacity, electric infrastructure, emergency services and neighbouring properties, including noise and land-use compatibility. It states that permitting projects before suitable standards are in place could authorise substantial infrastructure demands and land-use impacts.
City staff are directed to continue studying data-center impacts, review proposed regulations against the city’s 2019 comprehensive plan, seek public input and report progress to the council. The council may terminate the moratorium early once its purpose has been fulfilled. There is no automatic renewal after the July 2027 expiry.
The measure does not revoke valid permits already issued, impair vested rights, stop lawful operation of an existing facility, or prevent maintenance, repair or health-and-safety work that does not permit expansion or increased approved capacity. The city will receive and retain new applications and notify applicants of the moratorium, while deferring approvals only to the extent permitted by law.
During the public hearing, speakers supported extending the moratorium and raised concerns about water, noise, air quality and the pace of data-center development. The City Attorney said the extension would also allow Aberdeen to coordinate with Brown County on possible joint jurisdiction over data centers within the territorial limit permitted under state law.
The agenda memo also linked the timing to Aberdeen’s affordable-housing shortage. It said more than 1,500 people from the Applied Digital workforce in Ellendale were temporarily housed in Aberdeen, a figure projected to fall to about 1,150 by 1 January 2027 and about 550 by 1 July 2027.
The council’s action comes as Aberdeen proceeds with major wastewater investment. At the same meeting, it approved payment request 16 of USD2.225 million to PKG Contracting for the Water Reclamation Facility Phase 1 Improvements project. The USD91.759 million project is intended to increase pretreatment, intermediate pumping, aeration-basin, blower, final-clarifier and effluent-UV-disinfection capacity. Engineering documents put the scheme at approximately 51% complete including stored materials, with substantial completion scheduled for 28 December 2027.
This summary was generated by AI based on the source document and may contain errors.
Source: Aberdeen City Council Meeting - October 19, 2026 - Agenda for Regular City Council Meeting at 5:30 P.M., Aberdeen