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

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

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

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

What This Bill Does

• protect residents from increased utility costs and utility shortages caused by data centers and clarify authority to regulate data centers.
• Official keyword topics: Administrative Procedure Data Centers Planning, Zoning and Housing Programs Public Records and Files Public Utilities and Carriers Reports Tax Exemptions and Refunds Water Management Official sponsor note: Senators <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4773/Detail">Karr</a> (prime), <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4762/Detail">Hohn</a>, <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4763/Detail">Howard</a>, <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4780/Detail">Lapka</a>, <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4794/Detail">Nelson</a>, <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4802/Detail">Peterson (Sue)</a>, and <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4829/Detail">Voita</a> and Representatives <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4758/Detail">Hansen</a> (prime), <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4731/Detail">Andera</a>, <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4734/Detail">Aylward</a>, <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4737/Detail">Baxter</a>, <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4755/Detail">Greenfield</a>, <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4761/Detail">Heinemann</a>, <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4782/Detail">Lems</a>, <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4786/Detail">May</a>, <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4795/Detail">Nolz</a>, <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4796/Detail">Novstrup</a>, and <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4797/Detail">Odenbach</a>

Limits and Unknowns

• This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Official Summary Text

protect residents from increased utility costs and utility shortages caused by data centers and clarify authority to regulate data centers.
Official keyword topics:
Administrative Procedure
Data Centers
Planning, Zoning and Housing Programs
Public Records and Files
Public Utilities and Carriers
Reports
Tax Exemptions and Refunds
Water Management
Official sponsor note: Senators <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4773/Detail">Karr</a> (prime), <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4762/Detail">Hohn</a>, <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4763/Detail">Howard</a>, <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4780/Detail">Lapka</a>, <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4794/Detail">Nelson</a>, <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4802/Detail">Peterson (Sue)</a>, and <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4829/Detail">Voita</a> and Representatives <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4758/Detail">Hansen</a> (prime), <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4731/Detail">Andera</a>, <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4734/Detail">Aylward</a>, <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4737/Detail">Baxter</a>, <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4755/Detail">Greenfield</a>, <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4761/Detail">Heinemann</a>, <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4782/Detail">Lems</a>, <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4786/Detail">May</a>, <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4795/Detail">Nolz</a>, <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4796/Detail">Novstrup</a>, and <a rel="noopener" href="https://sdlegislature.gov/Legislators/Profile/4797/Detail">Odenbach</a>

Current Bill Text

26.729.47 101st Legislative Session 135

2026 South Dakota Legislature
Senate Bill 135
ENROLLED

AN ACT

ENTITLED An Act to protect residents from increased utility costs and utility
shortages caused by data centers and clarify authority to regulate data
centers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. This Act is known as the "Data Center Bill of Rights for Citizens."
Section 2. That a NEW SECTION be added to a NEW CHAPTER in title 49:
For purposes of this chapter, "data center" means a centralized repository for the
dissemination, management, processing, and storage of electronic data and information,
with a peak demand of ten megawatts or greater.
Section 3. That a NEW SECTION be added to a NEW CHAPTER in title 49:
A provider of electricity shall establish and maintain separate terms and conditions
for electric service applicable to a data center. The terms and conditions must require that
the data center reimburse any provider of electricity for all costs fairly att ributed to the
data center for service demand and utility consumption, including costs incurred to serve
the data center if the data center departs the system or materially reduces its load.
Section 4. That a NEW SECTION be added to a NEW CHAPTER in title 49:
The state may not preempt or otherwise limit the authority of the governing body
of a county, municipality, or other political subdivision to adopt ordinances and resolutions
limiting, prohibiting, or otherwise regulating the construction, development, or operation
of data centers.
Section 5. That a NEW SECTION be added to a NEW CHAPTER in title 49:
26.729.47 2 135
SB135 ENROLLED
Prior to commencing operation in this state, the operator of a data center shall
provide notice of projected water consumption to each local water provider in the area in
which the data center is proposed to be located. Each water provider receiving notice
pursuant to this section shall determine whether the data center's projected water
consumption is compatible with the local water supply and issue that determination in
writing to the operator. The operator shall present a copy of each notice and determination
to the Board of Water Management.
If the board receives a determination from each applicable water provider that the
data center's projected water consumption is compatible with the local water supply, the
board must issue, to the operator and the general public, a written statement that t he
operator has satisfied the requirements of this section.
Notwithstanding the board's issuance of a written statement pursuant to this
section, the data center may not consume an amount of the local water supply exceeding
limits established by order of the board, after allocation to residential and essential public
services. In establishing allocation limits under this section, the board shall seek to ensure
water availability and prevent disproportionate use of water by data centers.
Section 6. That a NEW SECTION be added to a NEW CHAPTER in title 49:
The operator of a data center that is authorized to operate in this state pursuant
to this chapter, shall, at the time and in the manner prescribed by the Board of Water
Management, submit to the board a semi-annual report regarding the data center's water
use. The report must contain average usage data and certify compliance with this section.
The board shall make the usage data contained in the report available to the public.
26.729.47 3 135
SB135 ENROLLED
An Act to protect residents from increased utility costs and utility shortages caused by data
centers and clarify authority to regulate data centers.

I certify that the attached Act originated in
the:

Senate as Bill No. 135

Secretary of the Senate

President of the Senate

Attest:

Secretary of the Senate

Speaker of the House

Attest:

Chief Clerk of the House

Senate Bill No. 135
File No. ____
Chapter No. ______

Received at this Executive Office
this _____ day of _____________,

2026 at ____________M.

By
for the Governor

The attached Act is hereby
approved this ________ day of
______________, A.D., 2026

Governor

STATE OF SOUTH DAKOTA,
ss.
Office of the Secretary of State

Filed ____________, 2026
at _________ o'clock __M.

Secretary of State

By
Asst. Secretary of State