# South Dakota Launches Rapid City Defense Cluster

Governor Larry Rhoden announced a **$1 million investment** to establish a new defense cluster in Rapid City, South Dakota, with Northrop Grumman designated as the anchor tenant. This initiative leverages the Rapid City Innovation District and proximity to Ellsworth Air Force Base to foster collaboration among defense companies, government entities, and educational institutions, aiming to strengthen the state's national security industry.

- The investment signals South Dakota's commitment to expanding its defense industrial base and attracting major defense contractors
- Northrop Grumman's role as anchor tenant creates opportunities for subcontractors and suppliers to engage in the cluster's ecosystem
- Procurement professionals should consider the cluster's development when planning defense-related solicitations or partnerships in the region
- Businesses can explore collaboration and innovation opportunities within the Rapid City Innovation District to support defense modernization efforts

**Jurisdictions:** sled
**Industries:** Defense & Military
**Topics:** Physical Infrastructure
**Published:** September 24, 2026

### Government Entities
- State of South Dakota
- United States Senate
- Ellsworth Air Force Base
- Elevate Rapid City
- South Dakota Ellsworth Development Authority

### Vendors
- Northrop Grumman (anchor tenant)

### Key Quotes
> When a world-class company like Northrop Grumman chooses to invest in our state, it sends a strong signal to the national security industry about their belief in the opportunities available in South Dakota.
> — Larry Rhoden, Governor

### Sources
- [News - Governor Rhoden Announces Northrop Grumman As Anchor Tenant in Rapid City Defense Cluster](https://news.sd.gov/news?id=news_kb_article_view&sys_id=92529cc997efcb107fc1b480f053af87) - SD