Dakota State University could help establish South Dakota as a cyber state by building research lab in Sioux Falls

Dakota State University is investing $90 million over five years to grow the cyber-research industry in South Dakota through a public-private partnership.

Graduates from the DSU Beacom College of Computer and Cyber Sciences address the state’s rapidly-growing demand for cybersecurity professionals now, but often DSU graduates leave for the coasts for work, university officials said in a press release announcing the new partnership Wednesday.

This effort, which would expand DSU's applied research lab into the state's largest city, could help more graduates stay and work at home in South Dakota.

“We see this as an opportunity, a challenge,” stated DSU president José-Marie Griffiths in the release, adding the vision to expand DSU’s lab to Sioux Falls will “stimulate a vibrant cyber-research industry.”

The expansion could support national security and defense, offer workforce and economic development opportunities and help establish South Dakota as a cyber state.

Regent Tony Venhuizen said the types of jobs this project would establish in Sioux Falls are classified, and the facility will be very "high security" so people can do classified work there. It will have the technology to be protected from "outside intrusion," he added.

"Research space like that is very highly sought after all around the country," he said. "It's a facility that will certainly be in demand."

More: Cybersecurity offers jobs, high wages — if enough people can be trained

Where will this be built?

The new applied research lab will be owned by the state by way of the Board of Regents and DSU, and is expected to open by fall 2025, supporting 400 to 500 full-time jobs.

It will be located on 10 to 16 acres of land donated by Sanford Health at the Sanford Sports Complex adjacent to Sanford’s Virtual Care Center.

In Madison, DSU plans to continue to fill its applied research lab to as many as 125 or 150 full-time jobs. The university will also increase capacity to double the number of graduates from 200 to 400 annually with recruitment and retention efforts.

A nonprofit will be established to hire staff for the lab who will manage applied research and lease spaces for DSU in both Madison and Sioux Falls.

This nonprofit will also run intensive summer cybersecurity boot camps by summer 2023 for students from other universities in the state who major in cyber-related disciplines like computer science, computer engineering and software engineering.

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The “Governor’s Cyber Academy” will also offer dual credit programs to high school students across the state, helping expand the “cyber talent pipeline” and career opportunities.

Of the $90 million going toward this initiative, $50 million over five years will come from T. Denny Sanford to expand in Sioux Falls; $10 million will come from the city, pending council approval; $250,000 from Forward Sioux Falls for a cyber/IT park in Sioux Falls; $30 million from the state as proposed in Gov. Kristi Noem’s State of the State address, pending legislative approval.

Noem’s $30 million proposal could expand the educational capacity of the Beacom College to double graduates from 200 to 400 per year, and would launch the Governor’s Cyber Academy.

Although $40 million of this project is still pending city council and legislative approval, Noem told the Argus Leader on Wednesday that she thinks they'll approve it, noting the support of Reps. Kent Peterson and Mark Willadsen who attended the announcement of the project at Great Shots.

"If they don't as far as the $10 million, we need to get back to the table and see if another entity would be willing to invest more, but I believe they will (support it)," Noem said.

Execution of this plan will be overseen by DSU and the Board of Regents.

More on the DSU cyber research lab

Noem mentioned the project in her State of the State Address two weeks ago, that the cybersecurity program at DSU would expand with a $30 million investment to expand and realign cyber-security training facilities, including a new Sioux Falls location.

"Cybersecurity is an emerging, cutting edge industry. But companies go where the talent is. Let’s train South Dakotans in cybersecurity," she said at the time. "Let’s give those companies a reason to locate in our state."

Senate President Pro Tempore Lee Schoenbeck said he was pleased with the proposal when Noem announced it, and entrepreneurs like Matt Paulson in Sioux Falls called it a “great development,” pairing well with other science and technology initiatives in the city. Mayor Paul TenHaken also said he was excited about the potential public-private partnership.

In a statement Wednesday afternoon, Sen. Mike Rounds said the announcement was a game-changer for the state, and will help South Dakota expand its critical role in the cybersecurity industry.

This type of project shares some similarities to the Discovery District, Venhuizen told the Argus Leader. While the District is focused on biotech and health sciences, this project is focused on cybersecurity.

And where the District will have an incubator to generate more activity in the biotech field and "spin out employers," Venhuizen said, the DSU facility will house researchers and contractors in a high-security facility that will also "spin out more activity, but in the cybersecurity space."

University officials, including President Griffiths, had initially declined to share further details about plans to build in Sioux Falls until the announcement was made formal at a press conference Wednesday.

This article originally appeared on Sioux Falls Argus Leader: DSU to build research lab to Sioux Falls to help SD become cyber state