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Data center campus · Leola, McPherson County, South Dakota

Leola Data Center

Proposed as of Sept. 2026

A 50 MW server facility proposed next to MDU's Leola substation in McPherson County, which won PUC approval for MDU service in 2026 but still awaits a county conditional use permit. Also known as: Leola Data Center, LLC.

Cite← South Dakota data centers
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Power50MW reported · record
Site20acres

Who is behind it

ProjectLeola Data CenterAlso: Leola Data Center, LLC
Developer and teamLeola Data Center (through Leola Data Center, LLC)
End userNot found in the recordsNot yet named in any record or credited report we have found.

The record, newest first

  1. SDPB reported that the PUC unanimously approved the settlement and noted the commission has no authority to permit the data center itself. (SDPB, Sept. 9, 2026)

  2. The Dakota Scout reported that the county planning and zoning board deferred the conditional use permit until agreements securing the company's pledges are in place. (The Dakota Scout, Sept. 7, 2026)

  3. PUC staff recommended approval of a settlement under which MDU would serve the data center while protecting FEM's territory. (South Dakota Public Utilities Commission, Sept. 1, 2026)

  4. McPherson County commissioners adopted Ordinance 2025-1, making data processing centers a conditional use in the agricultural district. (McPherson County, July 1, 2025)

  5. South Dakota Searchlight described the Leola plan as the largest data center then proposed in the state. (South Dakota Searchlight, Dec. 7, 2024)

  6. Supplemental material for a McPherson County conditional use permit described a 50 MW data center on about 20 acres beside MDU's Leola substation, roughly five miles southwest of town. (South Dakota Public Utilities Commission (filed in EL24-027), Nov. 7, 2024)

  7. Leola Data Center, LLC petitioned the PUC (docket EL24-027) to have Montana-Dakota Utilities assigned as its electric supplier instead of FEM Electric. (South Dakota Public Utilities Commission, Aug. 5, 2024; South Dakota Public Utilities Commission, Sept. 1, 2026)

Conflicts and open questions

  • Acreage differs by source: the permit application says about 20 acres (about 2 acres built), while 2026 news reports say about nine acres.
  • SDPB corrected an earlier version of its story that had called the facility a cryptocurrency mining operation.
  • The docket was contested: intervenors took part, and staff filings in January 2025 and June 2026 addressed the company's summary judgment motion before the settlement.

The full record

Status note
The PUC approved a settlement in September 2026 letting Montana-Dakota Utilities serve the site; the county planning and zoning board deferred the conditional use permit until legal agreements on the company's financial pledges are in place.
Power note
The county permit application and news reports both give 50 MW; the PUC petition lists a contracted minimum demand above 2 MW.
Evidence
Primary public records
Size class
50 MW or more (tracker scope)
Map position approximate, from the reported address or area. Updated Oct. 17, 2026.