Rhoden defends data center push as Ahlers targets state incentives

South Dakota Governor Larry Rhoden and Democratic challenger Dan Ahlers clashed on economic development strategy during a recent pre-election broadcast. The two men offered contrasting views on how the state should attract business and manage its budget. Rhoden defended his administration’s recent infrastructure deals, while Ahlers urged a shift toward supporting smaller, local ventures.

Ahlers argued that the state’s current incentive program favors large, foreign-owned corporations over homegrown businesses. He specifically questioned the return on investment for a $69 million package granted to the company CJ Schwan’s. The candidate asked what South Dakota received in return for that substantial financial commitment. He stated that the state needs to prioritize qualifications when hiring state agency secretaries, regardless of political affiliation, to ensure departments are run by experienced leaders.

To illustrate his point, Ahlers cited a farmer in Wakonda who planned to build a hempcrete manufacturing facility. The project was designed to create 10 to 12 jobs paying between $22 and $25 an hour. The farmer could not secure state incentives, so the operation is being built in Iowa instead. Ahlers said this example represents the type of small-town economic development the state should support. He also criticized the lack of local regulations on mining operations in western South Dakota, which he said are appearing in residents' backyards.

On the privacy front, Ahlers expressed concern over the expanding use of Flock license plate-reading cameras. He described the technology as an invasion of privacy because the data can cross state lines and be accessed by outside entities. He called for state and federal legislation to establish safeguards for this information. Ahlers also noted that while some polls show him trailing Rhoden by 3 to 10 percentage points, one poll taken after a State Fair debate showed him leading by 3 points. He said he campaigns as if he is behind because he is a Democrat in a Republican-dominated state.

Rhoden responded to public opposition regarding data centers and artificial intelligence by suggesting that residents are being influenced by outside rhetoric. He implied that China may be cultivating some of the concerns surrounding these technologies. Rhoden said his administration has addressed fears through a data center Bill of Rights. He assured ratepayers and residents that these projects will be treated like other economic development proposals while protecting natural resources. He described the last two legislative sessions as difficult due to deep divisions within the Republican caucus, but said his team worked with both parties to pass major legislation on prison funding, the pipeline, and property tax relief.

Attorney General Marty Jackley, who is running for Congress, joined the discussion to outline his legislative record. He noted that he introduced 10 bills during the previous session and all 10 passed. He said the measures addressed public safety, election integrity, and open-meeting laws. Jackley said he is willing to work with Democratic counterparts in other states if it benefits South Dakota. He also argued that Congress needs to pass a new farm bill, as the last one was enacted in 2018. He cited food security, ethanol, and biodiesel as key issues for the state. Jackley declined to comment on whether U.S. Rep. Ilhan Omar broke the law, stating he had not reviewed her file yet.

The broadcast also featured Lt. Gov. Tony Venhuizen, who discussed his joint campaign bus tour with Rhoden and Jackley. The tour was designed to discuss the team's plans for the state. Ahlers said he would not immediately dismantle initiatives started by previous governors if elected. Instead, he said he would talk with the people operating those programs and make changes based on their input.