Codington County Eyes Regulation for Data Centers as Construction Values Hit $19.7 Million

Northeast Radio SD News - Watertown, SD - Codington County officials are looking to stay ahead of emerging technology trends, including battery storage and data centers, as the county concludes a year of steady construction growth.

During last week’s meeting of the Codington County Commissioners, Zoning Officer Luke Muller presented the 2025 year-end planning and zoning report, noting that construction value in the county reached $19.7 million. While the number of building permits issued (113) was slightly below the historical average of 115 to 120, the total valuation remained on a consistent trend line.

Proactive Regulation for “Hot Button” Projects

Muller emphasized the need to update county ordinances to address “hot button” issues such as battery storage and data centers.

“We want to be proactive, not reactive to that sort of thing,” Muller told the board. He noted that while data centers share some similarities with solar energy models regarding decommissioning and setbacks, the noise generated by data centers requires a more specific regulatory approach. “It’s been on the horizon. We really need to get something on the books as far as how we’re going to handle those moving forward.”

Financial Snapshots and Fee Adjustments

The planning and zoning office reported $34,122 in fees generated from building permits and $3,225 from variances and conditional use applications. Despite steady construction activity, Muller advised that the county’s application fees—currently around $100—are significantly lower than those in neighboring counties, where costs typically range from $200 to $500.

“The reality is if we threw $150 on top of each application, we would have been above water,” Muller said, suggesting a dynamic fee update is likely in the near future. The office finished the year roughly $2,000 under budget.

Contract Renewals and Appointments

The commission took the following administrative actions:

·        Zoning Services: Authorized Chair VanDusen to sign a 2026 agreement with the First District Association of Local Governments for zoning services. The contract is capped at $34,640, including a 3% annual increase.

·        Board Appointments: Reappointed Calvin Mack and Brenda Hanten to the Planning Board, with terms expiring Dec. 31, 2028. Commissioner Randy Schwier also continues his long-standing service as the commission’s representative on the board.

Commissioner Randy Schwier praised Muller’s accessibility and expertise, noting the importance of having professional guidance on “high speed dial” to navigate complex zoning issues throughout the year.