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Bill

HB 1301

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

2026 Regular Session Introduced by Erin Healy and 1 co-sponsor

South Dakota bill imposes moratorium on new data centers and limits their electricity use to reduce grid strain and protect consumer electricity rates.

State Affairs Deferred to the 41st legislative day , Passed, YEAS 10, NAYS 2
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Bill Summary · HB 1301

Legislative bill overview

HB 1301 seeks to limit costs and risks associated with electricity consumption by data centers in South Dakota and establishes a moratorium on new data center development. The bill was recently advanced by the House State Affairs committee with bipartisan support (10-2 vote) and is scheduled for further consideration.

Why is this important

Data centers consume significant electricity and can strain local power grids and infrastructure. South Dakota has attracted data center development due to lower costs and abundant renewable energy, but unchecked expansion could drive up electricity rates for residents and businesses while creating environmental concerns. This bill represents an attempt to balance economic development with rate protection and resource management.

Potential points of contention

  • Economic development trade-off: Data centers create jobs and tax revenue; a moratorium may discourage investment and economic growth that the state has been cultivating
  • Electricity cost impacts: Supporters argue this protects ratepayers from cost increases; opponents may contend restrictions increase scarcity and ultimately raise rates
  • Moratorium scope and duration: The bill's specific terms (which data centers are affected, moratorium length, exemptions) will determine whether it's perceived as reasonable regulation or overly restrictive

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

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