While South Dakota is best known for agriculture, its technology sector has been steadily expanding over the past few decades. Small but innovative tech companies are finding success in niche areas like agriculture technology, energy solutions, and telecommunications.
According to a 2018 study, South Dakota‘s tech industry generates over $2 billion for the state annually. The sector struggles to retain top talent as many tech graduates leave for higher-paying jobs out of state. However, efforts are underway to invest further in the industry.
Key Tech Industry Facts and Figures
South Dakota‘s tech industry employs around 5,000 people directly. When indirect jobs are included, the sector accounts for over 17,000 jobs or 5% of South Dakota’s workforce.
The average tech industry salary is around $59,000 in South Dakota compared to a national average of $93,000. This pay disparity prompts many skilled graduates to leave the state.
Tech brings in 5-7% of South Dakota‘s annual GDP. Companies like Daktronics, Raven Industries, and Black Hills Corporation each generate over $300 million in revenue annually.
Top Tech Companies in South Dakota
Here are the largest and most influential tech companies headquartered or operating in South Dakota:
Daktronics
Founded in 1968 by two South Dakota State University professors, Daktronics designs and manufactures electronic scoreboards, digital billboards, and large LED video displays. With $482 million in revenue in 2021, it is the largest tech company in the state.
Daktronics‘ displays feature at sporting venues like the Olympics and Madison Square Garden. The publicly-traded company employs around 2,500 people.
Raven Industries
Raven Industries focuses on high-tech solutions for precision agriculture, aerospace, and engineered films. Founded in 1956 to provide research services to NASA and the government, Raven Industries now creates autonomous farm equipment, plastic films, radar systems, and more.
Acquired by CNH Industrial in 2021, Raven brings in over $340 million in annual revenue and employs around 1,300 people.
Black Hills Corporation
Founded in 1941, Black Hills Corporation is a Rapid City-based energy and utility company. It provides electricity, natural gas, oil, and coal to over 760,000 customers across 8 states.
In 2021, Black Hills Corporation delivered $1.7 billion in revenue. With its 3,100 employees, it is among the largest companies headquartered in South Dakota.
Innovative Systems
Founded in Mitchell in 1998, Innovative Systems offers broadband, software, and telecom solutions tailored to rural utility cooperatives. Their products help modernize operations through communications and smart grid technologies.
Today, Innovative Systems employs around 180 people to serve clients across the United States.
Sioux Valley Energy
Located in Colman, Sioux Valley Energy is a customer-owned electric cooperative serving parts of Minnesota and eastern South Dakota. As a member of the National Rural Electric Cooperative Association, Sioux Valley Energy manages power lines covering over 50% of the continental United States.
With around 100 employees, this lesser-known firm owns $11 billion in energy assets across 2 million miles of power lines.
Efforts to Boost South Dakota‘s Tech Sector
Seeing the rising demand for skilled tech labor nationwide, South Dakota leaders have prioritized growing the state‘s technology industry.
Governor Kristi Noem has spearheaded investment in cybersecurity training programs through Dakota State University. Private companies are also partnering with schools to provide internships and tailored computer science curriculums. The goal is to give students relevant experience using cutting-edge technologies so they launch their careers within the state.
Additionally, entrepreneurial programs help nurture emerging startups while business incentives aim to attract established tech firms to open offices in South Dakota.
If these efforts pay off, South Dakota could become a regional hub for agriculture technology, energy innovation, and other fields. More competitive salaries would help retain homegrown talent.
While no one will confuse Sioux Falls for Silicon Valley anytime soon, South Dakota‘s overlooked but expanding technology sector provides key services while driving economic growth across the state.
