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South DakotaSB 135101st South Dakota Legislature (2026)Senate

protect residents from increased utility costs and utility shortages caused by data centers and clarify authority to regulate data centers.

Sponsored By: Hansen, Jon (Republican), Karr, Chris (Republican)

Signed by Governor

Administrative ProcedurePlanning, Zoning and Housing ProgramsPublic Records and FilesPublic Utilities and CarriersReportsTax Exemptions and RefundsWater ManagementData Centers

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 3 benefits, 0 costs, 0 mixed.

Local governments keep data-center rule powers

South Dakota cannot block or limit local governments’ power to adopt rules for data centers. This protection covers centers with peak power demand of at least 10 megawatts. Counties, municipalities, and other local governments may limit, ban, or regulate their construction, development, or operation. The law does not require local governments to adopt restrictions.

Homes get priority over data-center water

Before operating, South Dakota data centers with peak demand of at least 10 megawatts must notify each local water provider of projected water use. Providers must give written findings on whether that use fits local supplies; operators must send the notices and findings to the Board of Water Management. If every applicable provider finds the use compatible, the board must issue a written confirmation to the operator and public. The board must allocate water first to homes and essential public services, then set limits to protect supply and prevent disproportionate data-center use. Centers cannot exceed those limits, even after the board issues its confirmation. Once authorized, operators must report average water use and certify compliance twice a year, following the board’s schedule and format; the board must publish the usage data.

Data centers pay their electricity costs

South Dakota electricity providers must set separate service terms for data centers with peak demand of at least 10 megawatts. Those terms must require centers to pay all costs fairly tied to their service demand and power use. This includes costs incurred to serve a center that leaves the system or sharply reduces its power demand. The rule helps protect other utility customers from bearing those costs.

Sponsors & Cosponsors

Sponsors

  • Hansen, Jon

    Republican • House

  • Karr, Chris

    Republican • Senate

Cosponsors

  • Andera, Bobbi L.

    Republican • House

  • Aylward, Aaron

    Republican • House

  • Baxter, Heather

    Republican • House

  • Greenfield, Lana J.

    Republican • House

  • Heinemann, Leslie J.

    Republican • House

  • Hohn, Joy A.

    Republican • Senate

  • Howard, Taffy

    Republican • Senate

  • Lapka, Mark

    Republican • Senate

  • Lems, Karla J.

    Republican • House

  • May, Liz M.

    Republican • House

  • Nelson, Lauren

    Republican • Senate

  • Nolz, Kaley

    Republican • House

  • Novstrup, Al

    Republican • House

  • Odenbach, Scott

    Republican • House

  • Peterson, Sue

    Republican • Senate

  • Voita, Mykala

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 173 • No: 16

Senate vote • 3/10/2026

Concurred in amendments

Yes: 33 • No: 1

House vote • 3/5/2026

Do Pass Amended

Yes: 60 • No: 7

House vote • 3/2/2026

Do Pass Amended

Yes: 11 • No: 0

Senate vote • 2/20/2026

Motion to amend

Yes: 30 • No: 4

Senate vote • 2/20/2026

Do Pass Amended

Yes: 34 • No: 0

Senate vote • 2/18/2026

Do Pass

Yes: 5 • No: 4

Actions Timeline

  1. Signed by the Governor

    3/30/2026Senate

  2. Delivered to the Governor

    3/12/2026Senate

  3. Signed by the Speaker

    3/11/2026House

  4. Signed by the President

    3/11/2026Senate

  5. Concurred in amendments

    3/10/2026Senate

  6. Do Pass Amended

    3/5/2026House

  7. Remove from Consent Calendar

    3/4/2026House

  8. Certified uncontested, placed on consent

    3/2/2026House

  9. Do Pass Amended

    3/2/2026House

  10. Motion to amend

    3/2/2026House

  11. Scheduled for hearing

    3/2/2026House

  12. First read in House and referred to

    2/23/2026House

  13. Do Pass Amended

    2/20/2026Senate

  14. Motion to amend

    2/20/2026Senate

  15. Deferred to another day

    2/19/2026Senate

  16. Do Pass

    2/18/2026Senate

  17. Scheduled for hearing

    2/18/2026Senate

  18. First read in Senate and referred to

    1/27/2026Senate

Bill Text

  • Introduced

    1/26/2026

    PDF

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