The new substation, which will replace the current 90-year-old substation along Weber Avenue, will provide services for customers in Sioux Falls for the next 90 years or more.
The new substation, which is expected to start operations in 2015, will feature space for future expansion.
South Dakota Governor Dennis Daugaard said Xcel Energy and its predecessor firms have been providing electrical energy services to South Dakotans for more than 100 years.
"By building this new substation, Xcel Energy will be in a position to serve their customers for the next 100 years," Daugaard added.
The project is part of a $67m capital investment into the South Dakota economy.
Northern States Power Co.-Minnesota, an Xcel Energy company, regional vice-president Laura McCarten said, "We were able to take advantage of the transition of the stockyards site and acquire enough land to provide for a substation that will allow for long-term future growth."
