MADISON, S.D. — Madison city commissioners unanimously approved the first reading of a rezoning ordinance to allow for a potential cryptocurrency data center during a brief midday meeting on Monday, Feb. 2.
The ordinance centers on the rezoning of two parcels of land next to the Madison Generating Plant from agricultural and highway business to light industrial to allow for a potential digital currency mining facility.
Madison Mayor Roy Lindsay noted the first reading’s approval was the first of many steps for anything concrete to fully take shape, and that the passage of this ordinance does not guarantee a facility will be constructed in Madison.
Action on the ordinance was initially tabled after significant community comment and concern at the commission’s Jan. 20 meeting, which led to a pair of town hall sessions on Jan. 28 for additional public information on the proposed digital currency mining facility.
Zac Zwaschka / Madison Daily Leader
The proposed facility, which would be operated by Giga Energy, would be a small-scale data center that focuses on cryptocurrency mining rather than powering artificial intelligence systems.
At the town hall, City Administrator Jameson Berreth and Utilities Director Mike Plooster discussed how the proposed 10-megawatt facility would be air-cooled, only require water hookups for bathrooms, could be turned off in case of high electricity needs during an emergency and would leave a minor physical footprint. If the project progresses smoothly, Giga Energy could bring the facility online by August of 2026.
While community members have voiced multiple concerns with the project, the largest focuses on rising electric rates. During the town hall, Berreth and Plooster said they believed the facility wouldn’t negatively affect these rates.
Moreover, Plooster said the facility would generate an estimated $425,000 per year in electrical funds for the city, which could possibly encourage resident rates to decrease. It was also noted that Giga Energy would be financially responsible for necessary infrastructure upgrades related to the facility along with any decommissioning efforts should it shut down.
During Monday’s meeting, commissioners emphasized that passing the rezoning ordinance will allow for further information on the potential project, with additional details to be provided to the public at that time.
The second reading of the ordinance is set for the commission’s next regular meeting on Feb. 17 at 5:30 p.m.