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Bill

SB 232

impose a one-year moratorium on the construction or expansion of hyperscale data centers.

2026 Regular Session Introduced by Taffy Howard

South Dakota temporarily freezes new hyperscale data center construction for one year to evaluate environmental and infrastructure impacts.

State Affairs Tabled , Passed, YEAS 5, NAYS 3 S.J. 27
#datacenters #uncodifiedacts
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Bill Summary · SB 232

Legislative bill overview

SB 232 proposes a one-year moratorium on constructing or expanding hyperscale data centers in South Dakota. The bill would temporarily halt new large data center projects while the state presumably evaluates their impacts and develops regulatory frameworks.

Why is this important

Data centers consume enormous amounts of electricity and water, raising concerns about infrastructure strain, environmental impacts, and rural land use. South Dakota's decision on this issue could influence whether tech companies invest in the state and how quickly the region develops its digital economy versus protecting local resources.

Potential points of contention

  • Economic development vs. environmental protection: Data centers create jobs and tax revenue but require substantial power and water resources that may stress rural communities
  • Competitive disadvantage: A moratorium could push data center investment to neighboring states, potentially costing South Dakota economic opportunities
  • Regulatory clarity: The bill's effectiveness depends on what frameworks are developed during the moratorium year; unclear standards could simply delay rather than resolve concerns

Compiled from official sources — confirm details with the bill’s official record.

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