Rep. Garcia Explores the Economic and Environmental Risks of AI Data Centers in South Dakota
- Steve Jurrens
- May 26
- 2 min read
Northeast Radio SD News – Watertown, SD - The rapid and often opaque development of hyper-scale AI data centers in South Dakota is raising alarms among local leaders and energy experts. In a recent broadcast on Northeast Radio SD in Watertown, State Representative Josephine Garcia, who is running for State Senate in District 5, joined retired energy economist and engineer Curtis Jundt to discuss the hidden economic and environmental costs of these massive facilities.
With a new data center reportedly being planned up north in Codington County, both Garcia and Jundt urged citizens to look beyond the promises of economic booms and investigate the long-term impacts on local resources.
The Strain on the Power Grid and Consumers
Curtis Jundt, a retired natural gas industry asset development engineer and energy economist, expressed deep concern over the “hyper-pace” at which these facilities are being pushed through.
“We’re talking not just thousands of megawatts, that turns into gigawatts,” Jundt explained, referencing similar projects in North Dakota. “We’re talking about multiples of big cities coming at our power grid in the matter of a couple of years. The power grid that we have is decades old.”
Jundt warned that this unprecedented surge in demand off-peak will inevitably increase wholesale power prices, a cost that will be passed directly down to residential and commercial ratepayers.
Dispelling the Jobs Myth and Resource Drain
Proponents of data centers often tout massive job creation and economic revitalization. However, Representative Garcia firmly pushed back on this narrative.
“The reality is... we’re talking maybe 50 jobs, 20 jobs,” Garcia stated, noting that once operational, AI data centers are largely self-sufficient and heavily automated. She emphasized that the minimal job creation does not justify laying off thousands of people or displacing local agriculture.
Garcia and Jundt also highlighted severe environmental concerns, particularly regarding water consumption and land conversion. With some facilities utilizing open-loop cooling systems, millions of gallons of water could be drawn from local aquifers. Garcia pointed to a recent case in Arizona where a data center’s massive water draw caused local water pressure to drop significantly.
A Call for Transparency and Local Control
A recurring theme in the interview was the lack of transparency between developers, legislators, and the public. Jundt noted that elected officials often communicate with developers years in advance, with lobbyists pushing bills to “grease the skids” before the public even understands what is happening.
Garcia, who noted she recently voted against a bill that would have granted a 50-year tax credit for data centers, stressed the importance of protecting citizens’ rights and maintaining local control. She criticized the intimidation tactics used against counties that attempt to pause development to conduct proper due diligence.
“I think it’s reasonable and quite fair for the counties, townships, and the public who have never had ordinances or conditional use permits to convert agricultural land into these sorts of industrial facilities to be able to take a pause,” Jundt added.
With the primary elections approaching on June 2, Garcia urged voters to do their research and demand transparency from their elected officials.
Paid for by Garcia for SD Senate
