Noem’s Son-in-Law Sued by Former Employer Over Data Center Clients

Watertown City Councilman Kyle Peters, son-in-law of South Dakota Secretary of Homeland Security and former Governor Kristi Noem, is facing a lawsuit from his previous employer, A1 Development. The suit alleges Peters and his business partner misappropriated clients although he was still employed at A1 Development.

Details of the Lawsuit

A1 Development filed the lawsuit on February 19, 2026, accusing Peters and his partner, Josh Teigen, of breach of contract and conspiracy, among other claims [1]. The company claims Peters began diverting business to his own benefit as early as November 2025, after purchasing a 17.5% stake in A1 Development through his company, Disappointing River [1].

The lawsuit specifically centers around a potential data center project in Sioux Falls, with one client, Gemini Capitol, considering land valued at $170 million in South Dakota [2]. Gemini is seeking to prepare a site in northeastern Sioux Falls for a large-scale data center.

Peters and Teigen subsequently formed 1776 Group, a consulting firm focused on government relations and public sector engagement for the data center project [1].

Peters’ Background and Current Role

Prior to joining A1 Development in May 2021, Peters served in the South Dakota Governor’s Office of Economic Development under Governor Kristi Noem [2]. He currently represents Gemini Family Office in Sioux Falls and the South Dakota Legislature.

Legal Response

Steve Landon, an attorney representing Peters, has disputed the accusations made in the lawsuit [3].

Ongoing Situation

A1 Development is seeking compensatory and punitive damages for its losses and has requested a jury trial [3]. The case is ongoing.