South Dakota's cybersecurity and artificial intelligence sector has experienced a 350% expansion over the past ten years, a growth rate that ranks second in the United States. This rapid development is creating thousands of jobs and has significantly boosted the state's economy, with the sector's real GDP now approaching one billion dollars.
State officials are highlighting this progress during October, which is recognized as Cybersecurity Awareness Month. The growth is attributed to a combination of public and private investment, positioning South Dakota as an emerging leader in the technology field.
Key Takeaways
- South Dakota's cybersecurity and AI industry grew by 350% in the last decade, the second-fastest rate nationally.
- The sector contributed $953 million to the state's real GDP, an increase of 105% over the last five years.
- In 2024, the state recorded nearly 10,000 computer and mathematical jobs, with 7,840 identified as core cybersecurity and AI roles.
- Dakota State University is a central part of the state's strategy, holding all three NSA Center of Academic Excellence designations.
A Surge in Economic Output and Employment
The economic impact of South Dakota's focus on technology is substantial. Recent data shows the cybersecurity and AI sector's real Gross Domestic Product (GDP) reached $953 million. This figure represents a 105% increase over the past five years alone, demonstrating accelerated growth in the industry.
This economic expansion is mirrored in the state's job market. As of 2024, South Dakota is home to nearly 10,000 jobs in computer and mathematical fields. Of these, 7,840 are considered core positions directly within cybersecurity and artificial intelligence.
By the Numbers: South Dakota's Tech Boom
- 350%: Industry growth over the last 10 years.
- $953 Million: Real GDP from the cybersecurity and AI sector.
- 1,618: Core cybersecurity and AI business establishments in the state.
- 7,840: Core cybersecurity and AI jobs in 2024.
The number of businesses in this space has also grown. According to state data, there are now 1,618 business establishments dedicated to core cybersecurity and AI functions operating within South Dakota.
State Leadership Touts Industry Success
State officials have actively promoted cybersecurity as a key industry. Governor Larry Rhoden commented on the strategic importance of this sector for the state's future.
"South Dakota is proving that the careers of the future can be had right here in our home state. These career opportunities will be a vital part of keeping our state and nation strong, safe, and free," said Governor Rhoden. "Under the Noem-Rhoden Administration, we declared cybersecurity South Dakota’s ‘Next Big Industry,’ and the results back that up."
The Governor’s Office of Economic Development (GOED) has been instrumental in this initiative. GOED Commissioner Bill Even emphasized the dual importance of the industry for both security and economic prosperity.
"Cybersecurity is critical to both our national security and our economic future," Even stated. "South Dakota is proving that we can compete with anyone in this space. We’re building good careers, driving research that matters, and making sure our state is Open for Opportunity in this rapidly changing field."
The Role of Higher Education in Building the Workforce
A key component of South Dakota's strategy is its investment in education to create a skilled workforce. Dakota State University (DSU) in Madison is at the center of these efforts.
Dakota State University's Specialized Programs
The Beacom College of Computer & Cyber Sciences at DSU currently has 1,936 students enrolled. This institution is a critical pipeline for talent, with 618 computer and information sciences degrees awarded in South Dakota last year.
DSU's excellence in the field is nationally recognized. It is one of only 11 universities in the United States to hold all three Center of Academic Excellence designations from the National Security Agency (NSA). This distinction highlights its comprehensive programs in Cyber Defense, Cyber Operations, and Research.
What are NSA CAE Designations?
The National Security Agency's Centers of Academic Excellence (CAE) program identifies universities with robust cybersecurity degree programs. The three designations (Cyber Defense, Cyber Operations, and Research) certify that a university's curriculum and resources meet rigorous standards set by the federal government to produce top-tier cybersecurity professionals.
Driving Innovation with Applied Research
Beyond classroom education, Dakota State University's Applied Research Corporation (DARC) is a major force behind the state's industry growth. DARC focuses on strengthening national security and promoting innovation.
A primary goal of the corporation is to create high-value career opportunities. By doing so, it helps retain top technology talent within South Dakota, preventing a "brain drain" of skilled graduates to other states.
Future Outlook and Cybersecurity Awareness
As Cybersecurity Awareness Month continues, GOED is encouraging businesses and individuals to engage with the topic. The office promotes learning about cybersecurity best practices and exploring the career paths available in this high-demand sector.
The sustained investment in education, research, and business development signals South Dakota's long-term commitment to the cybersecurity and AI industry. The state's rapid growth indicates that its strategy to become a national hub for these technologies is yielding significant results.