Economic Development

WOW! Deuel County, District 4 and the whole state may just be in for the largest economic boost we're ever seen.

$4,300,000,000.00

200 plus jobs

$13,000,000.00 in payroll.

Yep. Count the zeros. That's $4.3 BILLION.

First on the public agenda this morning at the Deuel County Commissioners meeting was Applied Digital, a Dallas TX based company. We met yesterday afternoon in anticipation of their presentation this morning. This is the same company currently constructing the data center in Ellendale ND.

There's allot to pack in here. Their proposal is to construct, on private land, a 900,000 square foot data center. Applied Digital is the "landlord" and they lease space to clients who use the facility. In this case, the site is anticipated to be leased to an AI company. This data center would cost approximately $4.3 billion. That's a big number. BIG. NUMBER. We're working with Applied Digital and also Dickey County in North Dakota as to how to establish the assessed value of an animal like this. Suffice it to say, the property tax generated by this economic powerhouse will likely be north of $5,000,000.00 a year. (I'm using Amtec in Deuel County to speculate on this. Their assessed value is $2.9 million and their tax load is about $50,000- from public record) Meaningful, especially to Deuel County.

More? 200 jobs. Applied Digital, in their presentation to the Deuel County Commissioners, posits the very high likelihood that these 200 jobs will pay an ~$65,000 year average wage/salary. More math, that's ~$13,000,000.00 in payroll.

More? Yep. The energy consumed by the data center is taxed at 4.2%. The data center will consume either side of 100 megawatts of electricity. That's more than the city of Watertown highest days use EVER. Sales tax revenue generated by this entrepreneur will be steady, reliable and constant. Every dollar they spend on electricity will PAY the state 4.2%.

More? In typical economies 7 jobs from one source will typically create an additional job nearby but unrelated to the host. So, it's likely the non direct jobs creation would be another 25+ jobs for entrepreneurs. Enterprises like daycare, bowling alleys, convenience stores, accountants, attorneys, etc.

More? This big idea presents opportunity for people. It creates competition in the labor market. Brings capital into the area. Creates more opportunities for our kids. Proves that South Dakota is open for business.

Nick Phillips, Applied Digital on the right, Myself, and Senator Sauder on the left

The downside: Plenty of people will peck away at this, I'll let them have their fun. At the end of the day this is a winner.

I plan on working with Applied Digital, the Governor, the legislature, Deuel County and all interested parties to make this work. But it will take an effort by all to land this plane. Our legislature needs to create a long term and enduring platform for Applied Digital, and, additional enterprises, to work from. We cannot go changing the rules midway through the process. I believe we can benefit immensely from the enterprise. Join me in supporting a great guest. Let's be the type of host we can count on.