A chance at economic diversity
by State Rep. Kent Roe
Data centers are generating a lot of conversation. Mostly positive conversation. I am 58 years old, and I remember a time when new technology scared me. I remember asking my dad, as a rattled kid, WILL THIS WORK? Whether it was pushing on a wrench, throwing a lever on a tractor, or the forever daunting electric fence shock test. Yep, it jolted me and amused my Grandpa sitting in the pickup watching. This experience was just another step in the never-ending test of trustworthiness. So, let’s step back and take a broader look at this situation: I trusted my dad; my dad trusted the technology; society accepted the technology; and we had a better world because of it.
Since then, technology has kept moving forward. When I was a kid, we had a party line telephone. Our ring was 2 short rings. We then had to hurry up with the conversation to free up the line for others. This line was on the Hayti line. I went to grade school in Hazel. That meant a long-distance call home from school if an adequate reason existed, which was a tall order when you’re a kid. It usually meant toughing it out and making the bus ride home. It’s amazing how many maladies cured themselves between the “emergency” and jumping off the bus at home.
We all know how quickly technology moves. My experiences with a party line to today’s instant communication, it is arguably all artificial. I’ll advance the notion that “artificial intelligence” has been around a long time. Society has decided to call this latest iteration “AI”. Like “xerox” meant to make a copy. And to produce a “facsimile” of a document was called a “fax”, “AI” now means artificial intelligence.
AI invokes technological advancements. Here we are today, still benefitting from humanity’s never-ending march into the future. Is it scary? It can be! As a child I was petrified of heights. As an adult visiting a chiropractor, I was apprehensive. As a bona-fide country boy rolling into Queens, New York in a semi-truck for the first time, yep, I was scared. There is plenty that frightens me today. I’d love to try sky diving, but up to this point I lack the courage.
South Dakotans are courageous individuals willing to take risks. Whether it was my grandpa risking my getting shocked from the hot-wire or my own gamble driving into completely foreign territory in the biggest city in the U.S. We are brave! We are willing to try new things and accept new concepts.
Much conversation has been raised regarding sales-tax for these data centers. I spent time in Pierre with the Department of Revenue, and I spent time with Bill Even & Joe Fiala from the Governor’s Office of Economic Development discussing taxation of these enterprises. I talked with Deuel County zoning, Sully County zoning, county commissioners from multiple counties, and legislators from other states. I visited with data center neighbors and school districts with data centers within their boundaries. I visited the enterprise in Ellendale, and I drove around the data center in Sully County. I have taken time to research & learn about these data centers.
We currently operate under rules adopted during the Daugaard administration. The Reinvestment Payment Program https://sdgoed.com/public-records/reinvestment-payment-program/ has been used by big thinkers since then to bring business, jobs and big opportunities to South Dakotans.
I have worked with Nick Philips from Applied Digital since early April of this year. He is a Subject Matter Expert (SME) on data centers. I have worked with subject matter experts (SME) in other fields. We rely on SME in medicine, law, food, transportation, etc. People become SME by being exactly that, Subject Matter Experts. I asked him to produce a document that would offer a summation of the enterprise from the industry, here that is:
South Dakota Data Centers Separating Facts From Fiction by Pat Powers on Scribd
Applied Digital offered tours of their site in Ellendale, N.D. I took advantage of their offer, as did many engaged legislators.
Several other states have already recognized the potential of the enterprise. Many have tax laws in place providing a favorable, inviting environment for pioneers. Here’s that link: https://www.naiop.org/research-and-publications/magazine/2024/Winter-2024-2025/development-ownership/an-overview-of-state-data-center-related-tax-incentives/
As a farm kid I was taught about diversification in farming. That’s what we had, a diversified farm. South Dakota has always had a diversified economy. Data centers offer another industry we can diversify into and would fit into both the local and state economy.
Patriotic Americans recognize the benefit of home-grown technology and the application of the fruits of that technology. We’re in a global race with China, Iran, and other bad actors in the AI world. Let’s help our United States of America remain as the undisputed champion of the free world.
Creating remedies for disease has consumed thinkers since time began. AI offers unrivaled assistance to researchers by helping them solve problems still too tough to crack.
In South Dakota we have a history of pioneering. Whether my ancestors in northeastern South Dakota, or the multi-generational ranches out west; their nerves of steel and patience of Job have led us to success in the past. Yes, there are broken dreams in our lives. As a child I dreamt of having a mini bike like my friends. I grew up and realized the immaturity of that desire. I learned the value of long-term planning and patience when plans didn’t roll out to reality. I learned the value of having a defined and reliable playing field. Let’s help ourselves. Let’s be diligent & prudent in our research. Let’s open our state to the next generation of pioneers. Let’s help our college and university students be first in line for tech jobs by proving we welcome progress.
These are modern pioneers looking for a place to settle. South Dakota can provide a good home for these entrepreneurs. Let’s make this happen.
Toby Vader isn’t the bad guy – Dusty Skywalker is!