Story perspectives

South Dakota Bill Aims to Regulate Data Center Costs

3/6/2026

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Data Centers Regulated

The bill would require data centers with peak use of 10 megawatts or more to cover power-related costs and notify local water providers.
The bill passed the South Dakota House of Representatives by 60-7.
The bill is under consideration by the Senate.
Supporters say the rule protects ratepayers from subsidizing large electric loads.
Opponents warn it could signal an anti-growth mindset and harm economic development.

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Lawmakers Advance Tax Relief

South Dakota lawmakers advance bills on property tax relief and digital currency regulation.
Senate Bill 245 would fund a homeowner tax-reduction from increased sales tax revenue.
Senate Bill 96 would allow counties to adopt a voluntary half-percent sales tax.
House Bill 1253 would cap property assessment increases at 5% over five years.
Two cryptocurrency bills move to Governor Larry Rhoden, addressing kiosk scams and defining cryptocurrency as a seizable asset.

History

Historical Context

California's Proposition 13, passed in 1978, significantly reduced property taxes and transformed local government funding, inspiring similar reforms nationwide. This trend continues with South Dakota's Senate Bill 245, which seeks to lower homeowner taxes by increasing sales tax revenue. These legislative efforts reflect ongoing debates about balancing tax relief and economic growth, impacting local funding and development strategies.

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Data Centers Regulated

The bill would require data centers with peak use of 10 megawatts or more to cover power-related costs and notify local water providers.
The bill passed the South Dakota House of Representatives by 60-7.
The bill is under consideration by the Senate.
Supporters say the rule protects ratepayers from subsidizing large electric loads.
Opponents warn it could signal an anti-growth mindset and harm economic development.

1 / 3