July 24, 2024

This paid piece is sponsored by Xcel Energy.

In Sioux Falls and across the Upper Midwest, corporations are making significant investments in new data centers, high-tech manufacturing facilities and national defense initiatives like aerospace testing and pharmaceutical production.

Companies like Google, Meta, Microsoft and Amazon Web Services bring thousands of construction jobs and billions of dollars to the communities where they choose to build these facilities.

“One important consideration in choosing a location is the availability of safe, reliable, affordable electricity to power their operation,” said Steve Kolbeck, Xcel Energy’s principal manager in South Dakota. “In addition, many of the nation’s largest companies have ambitious carbon-free energy goals. Xcel Energy’s progress towards carbon-free energy is a natural fit for companies with clean energy goals.”

Utilities across the country are focused on attracting new data centers by upgrading and expanding the electric grid to continue providing safe, reliable, affordable energy while meeting the growing demand driven by robust economic growth. Federal tax incentives are helping accelerate construction of the renewable energy infrastructure needed to meet energy needs while also reducing carbon emissions.

While Xcel Energy is a large company with customers in eight Western and Upper Midwestern states, its products and services are delivered locally by 98 people in the Sioux Falls service center. The team serves more than 107,000 customers in 50 South Dakota and southwest Minnesota communities. To accommodate projected growth in the Sioux Falls area, the service center is expanding east onto property formerly occupied by Border States Electric.

As a local business, Xcel Energy is interested in building and maintaining strong, healthy communities through many successful programs and partnerships. Xcel Energy collaborates with several community organizations that focus on economic growth in the Sioux Falls region. They include:

Xcel Energy programs

• Local Economic Development Grants: Each year, Xcel Energy grants money to communities within its South Dakota service area to assist with economic development initiatives that attract new residents with projects such as pickleball courts, bike paths, facade improvements, park upgrades, baseball and softball field improvements and marquee signs. Communities are invited to submit projects for consideration. The South Dakota Public Utilities Commission approves the company’s economic development filing annually.
• Corporate Economic Development Grants: To develop a portfolio of viable sites across Xcel Energy’s service territory, CED grants are available to assist with site development costs to expand the CED real estate program. The grants can also be used to support professional development opportunities for Xcel Energy’s EDO partners, particularly those with Xcel Energy sites in their communities. Specific program goals are to expand certified site inventory, assist EDOs with marketing their communities and sites, and generate leads for prospects that might be interested in Xcel Energy sites and communities.

Xcel Energy partnerships

• The Sioux Metro Growth Alliance serves a four-county metro area with a mission to stimulate, sustain and support economic growth of the communities, businesses and general stakeholders of the greater Sioux Falls metro area.
• The Sioux Falls Development Foundation is an economic development corporation with the mission of improving the Sioux Falls regional economy by connecting businesses with the people, tools and resources they need to be successful.
• Forward Sioux Falls is a unique, innovative program designed to grow and improve the Sioux Falls region. Through a joint venture between the Greater Sioux Falls Chamber of Commerce and the Sioux Falls Development Foundation, it works to outline strategic initiatives to grow jobs, businesses and quality of life. Since 1987, Forward Sioux Falls has raised more than $52 million for initiatives to enhance the Sioux Falls region.
• The South Dakota Small Business Development Center helps new entrepreneurs realize their dream of business ownership and assists existing businesses in their efforts to remain competitive.
• The South Eastern Development Foundation stimulates economic development through a regional Revolving Loan Fund for residents and businesses in Clay, Lincoln, McCook, Minnehaha, Turner and Union counties in southeastern South Dakota.

Safe, reliable, affordable, clean electricity and strong public-private partnerships are key to attracting economic growth and development to the Sioux Falls region. Today’s economic growth will help support thriving, healthy communities for decades to come.