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Data centers in Deuel County, South Dakota: 1 project mapped
Deuel County, population about 4,300 on South Dakota's eastern edge, was offered a multi-billion-dollar data center and, for now, lost it in Pierre rather than at the county courthouse. Applied Digital, the Dallas-based operator that grew out of hosting cryptocurrency miners, first presented its plans to county commissioners on April 15, 2025. The proposal was two data center buildings of about 907,500 square feet each, with a total load of 400 to 430MW, on a 150- to 200-acre site east of Toronto near a gas turbine and pipeline. The company put its own investment at $4.3 billion to $5.5 billion and the total project impact at $10 billion to $16 billion. It said the campus would create about 200 permanent jobs at an average salary of about $64,000; later, to South Dakota Searchlight, it said 250.
The pitch was built around cold air and spare power. Nick Phillips of Applied Digital said Toronto's colder climate makes it cheaper to cool buildings and means less water is used. He told commissioners the facility would use closed-loop liquid cooling with dry coolers and about 10 gallons of water a minute, mostly for offices, and that the company keeps at least half a mile from existing homes to limit fan noise. The site sits near Otter Tail Power's transmission lines and a gas-fired plant at Astoria, Searchlight reported. But the county had no zoning at all for a project of that scale, and Applied Digital never started permitting or bought land. Phillips told Searchlight in January 2026 that the company was waiting for the Legislature to pass a sales tax exemption before closing.
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Not everyone in the county wanted it. Sally Jo Sorensen, who publishes the Bluestem Prairie blog from Summit, north of the site, described organized local resistance by a group called RURAL, Residents United for Rural and Agricultural Land. The area's state representative, Kent Roe, told Searchlight there was "a mix of support, opposition and skepticism" among his constituents, and backed the tax break himself: "They're not going to roll into Deuel County, invest $5 billion and walk away in three or four years." Applied Digital floated building worker housing in Toronto that could later become senior housing, which the town lacks.
Across the border in Ellendale, North Dakota, Applied Digital's existing campus shows both sides of the bargain, Searchlight reported. Mayor Don Flaherty said the company nearly doubles the town's tax base and that local power customers have received bill credits. A former property manager, Jamie Walker, said rents for a one-bedroom apartment doubled from about $600 to more than $1,200 as construction workers arrived, pushing lower-income families out of town.
The Legislature rejected the sales tax exemptions in its 2026 session. On April 2, 2026, Phillips told Searchlight the Deuel project "doesn't make sense at this time" and that Applied Digital would let its land agreement near Toronto lapse. He left the door open: "My suspicion is I'll be around in Pierre next year, but it's hard to tell at this time." Whether it comes back depends on this November's elections for governor and every legislative seat, and on whether the county writes zoning rules in the meantime.
Data center projects on record in Deuel County
Grouped by the town each site sits in. The report above may name projects that have no record here yet.
Toronto1
| Project | Company | Status | Power | |
|---|---|---|---|---|
| Applied Digital Toronto (South Dakota)TorontoExact site not confirmed | Applied Digital | Withdrawn | Not reported |
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Every project above is drawn from public records, filings and local reporting. Each row links to what it is based on. Statuses change, so check the source date before you rely on one. Found something wrong? Write to [email protected] and it gets fixed.