limit costs and risks associated with electricity use by data centers and impose a moratorium.

26.988.10 101st Legislative Session 1301

2026 South Dakota Legislature
House Bill 1301

Introduced by: Representative Healy

Underscores indicate new language.
Overstrikes indicate deleted language.
An Act to limit costs and risks associated with electricity use by data centers and 1
impose a moratorium. 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 3
Section 1. That a NEW SECTION be added to chapter 49-34A: 4
Terms used in this Act mean: 5
(1) "Approval authority," for an electric utility that is: 6
(a) A state or rural electric cooperative, the board of directors; or 7
(b) Owned by a municipality or other political subdivision of this state, the 8
governing body; 9
(2) "Data center," any facility that is used as a centralized repository for the 10
dissemination, management, processing, and storage of electronic data and 11
information; and 12
(3) "Large data center," a data center with a peak electricity demand of twenty 13
megawatts or greater. 14
Section 2. That a NEW SECTION be added to chapter 49-34A: 15
When establishing or negotiating a rate or tariff for any data center, an electric 16
utility shall ensure that: 17
(1) The data center pays the full cost of providing electric service to the data center, 18
including the cost of any infrastructure upgrade necessitated by the operation of 19
the data center; 20
(2) The cost of providing electric service to the data center is not paid for by other 21
retail customers; 22
(3) The costs and risks of infrastructure upgrades are not transferred to other retail 23
customers during the operation of the data center; 24
26.988.10 2 1301
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Overstrikes indicate deleted language.
(4) Other retail customers are not placed at financial risk for paying stranded costs 1
associated with providing electric service to the data center if it prematurely ceases 2
operating; and 3
(5) The data center bears all costs of decommissioning the data center. 4
Section 3. That a NEW SECTION be added to chapter 49-34A: 5
The operator of a large data center shall submit to the electric utility providing 6
electric service to the large data center a proposal to meet some or all of the large data 7
center's load demand through private electric supplier agreements or self -generation, as 8
a means to limit the risk to other retail customers of stranded-asset costs. 9
If a large data center receives electricity from a private electricity supplier or self -10
generation in addition to an electric utility, the electric utility must interconnect the private 11
electricity supplier or self-generation at the large data center's cost. 12
Section 4. That a NEW SECTION be added to chapter 49-34A: 13
The operator of a large data center shall file an annual report with any electric 14
utility providing electric service to the large data center and, if the large data center 15
receives electric service from a public utility, with the commission. 16
The report must be filed on the date and in the form specified by the commission 17
or approval authority, as applicable. 18
The commission or approval authority, as applicable, shall make the report 19
available to the public, excluding information that is confidential pursuant to chapter 1-20
27. 21
Section 5. That a NEW SECTION be added to chapter 49-34A: 22
The report required under section 4 of this Act must contain: 23
(1) The name of the large data center; 24
(2) The name of each developer and owner of the large data center; 25
(3) The physical size of the large data center in square feet; 26
(4) The street address of the large data center and the county in which it is located; 27
(5) The peak electrical demand of the large data center; 28
(6) Information about any private electricity supplier or self -generation available to 29
the large data center pursuant to section 3 of this Act, and the amount of electricity 30
provided by the private electricity supplier or self-generation; 31
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Overstrikes indicate deleted language.
(7) A list of each customer type and the duration of any customer demand contract for 1
the large data center; 2
(8) A description of any transmission and distribution facility addition or enhancement 3
required to serve the large data center; 4
(9) A description of each energy efficiency, load management, and conservation 5
measure implemented by the large data center; 6
(10) A description of any commitment by the large data center to use renewable energy; 7
(11) An estimate of the service life of the large data center; 8
(12) A statement identifying each decommissioning resource, activity, and deficiency of 9
the large data center; 10
(13) Any policy, term, or schedule of the large data center, which is intended to limit 11
cost and risk impacts on other retail customers; 12
(14) Information about whether the large data center engages in any cryptocurrency 13
mining operation and the annual energy usage for the operation; and 14
(15) A copy of any required county or municipal zoning or other permit of the large data 15
center. 16
Section 6. That a NEW SECTION be added to chapter 49-34A: 17
At least annually, each electric utility shall provide, on the electric utility's website, 18
a report of: 19
(1) The statewide load forecast of large data centers serviced by the electric utility; 20
(2) A description of existing and proposed electricity generation needed to meet the 21
large data center load forecast; 22
(3) An estimate of the cost of any new generation and transmission needed to meet 23
the large data center load forecast; and 24
(4) Any applicable stranded-asset cost information, including the total cost recovered 25
from other retail customers. 26
Section 7. That a NEW SECTION be added to chapter 49-34A: 27
A large data center shall comply with any decommissioning requirements adopted 28
by the commission or approval authority, as applicable. In addition, the large data center 29
shall: 30
(1) Bear all costs of decommissioning the large data center; and 31
(2) Within the first year following the commencement of operation of the large data 32
center: 33
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Overstrikes indicate deleted language.
(a) Submit a decommissioning plan to the electric utility providing electric 1
service to the large data center; 2
(b) Post a security bond or other instrument that secures the costs of 3
decommissioning the large data center; and 4
(c) Provide a copy of the bond or instrument to the electric utility. 5
Section 8. Notwithstanding any other provision of law, a moratorium is imposed on any new 6
construction or expansion of a large data center in this state. The moratorium includes the 7
expansion of any data center that is not currently a large data center but, if expanded, would 8
become a large data center. The moratorium is in effect through June 30, 2027. 9