RAPID CITY, SD — On Thursday at a private Data Center-focused luncheon held by Elevate Rapid City, dozens gathered to hear local voices in the growing industry speak on necessities and pressures of the industry. Topics included power and water costs, as well as statements on the “arms race” for AI dominance between China and the United States, even as questions arise about hyperscaler organizations’ solvency continue.
Among those gathered was South Dakota Senator Casey Crabtree, who is currently seeking to serve as US representative for South Dakota (following the retirement of Dusty Johnson), running the ticket on his being a self-described ardent loyalist to sitting President Donald Trump. Speaking on the issue of Data Centers in South Dakota, this individual loyalty permeated all aspects of the conversation. “What we’re looking at here is president Trump’s been very clear that this is an arms race Vs China, and whoever wins, they are going to have the superior position when it comes to economic strength and national security. And so what we’ve put together is a very responsible plan that will benefit South Dakotans, but also ensure that we beat China”.
Crabtree went so far as to call the AI race comparable to the Cold War and Industrial Revolution in its significance, referencing Trump’s executive order Removing Barriers To American Leadership In Artificial Intelligence, which calls for “human flourishing, economic competitiveness, and national security,” several times over the course of the interview and speaking about the emphasis placed on AI development during a visit to the US Army War College.
However on the homefront, skepticism exists around the viability of Data Centers in South Dakota, as an extant electronic tax disincentivises significant technology investment within the state due to significantly increased taxes. This has led to an increase in focus by legislators to remove these tax barriers, an action which Crabtree has confidence in as South Dakota approaches its regular legislative session. “I feel very confident that we’ll go out and make a good case on it,” Said Crabtree, “This is clearly something that is an issue of national security and economic strength. This is part of the president’s agenda, and that’s something that I’ve been delivering on for the last 5 years since I’ve been surrounding the legislature, and I look forward to working on it again this year and working on these same issues when we get to Washington DC”.