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SB 135

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

2026 Regular Session Introduced by Bobbi Andera and 17 co-sponsors

SB 135 establishes state authority to regulate data centers and protect utility customers from cost increases and service disruptions caused by data center operations.

Signed by the Governor on 2026-03-30 S.J. 549
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Bill Summary · SB 135

Legislative bill overview

SB 135 aims to establish protections for South Dakota residents against potential utility cost increases and service disruptions resulting from data center operations. The bill seeks to clarify state regulatory authority over data centers, likely granting the state or utility commissions expanded oversight powers to manage their resource demands and impacts on existing customers.

Why is this important

Data centers consume massive amounts of electricity and water—potentially straining local utility infrastructure and driving up costs for residential customers. As data center development accelerates nationally, states are grappling with how to balance economic development against protecting existing residents from bearing infrastructure upgrade costs or service reliability risks.

Potential points of contention

  • Economic development vs. cost protection: Data center companies may argue that strict regulations discourage investment and job creation, while consumer advocates prioritize rate stability
  • Regulatory scope: Ambiguity over which state agency (Public Utilities Commission, utility boards, or legislature) holds final authority could create jurisdictional conflicts
  • Precedent for other industries: Defining how utilities can regulate data center demand may set expectations for regulation of other large industrial users, affecting future business recruitment

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

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