The amendment STRENGTHENS the bill's consumer protections by adding explicit language requiring data centers to pay "fair, just, and reasonable" costs for electricity and adding a new section imposing water consumption limits on data centers after allocating water to residential and essential public services. The changes shift from a prohibition-based approach to a more comprehensive regulatory framework that addresses both electricity cost-shifting and water scarcity concerns.
26.729.44 26.729.45 101st Legislative Session 135 2026 South Dakota Legislature Senate Bill 135 SENATE ENGROSSED Introduced by: Senator Karr Underscores indicate new language. Overstrikes indicate deleted language. An Act to protect residents from increased utility costs and utility shortages caused 1 by data centers and clarify authority to regulate data centers. 2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 3 Section 1. This Act is known as the "Data Center Bill of Rights for Citizens." 4 Section 2. That a NEW SECTION be added to a NEW CHAPTER in title 49: 5 For purposes of this chapter, "data center" means a centralized repository for the 6 dissemination, management, processing, and storage of electronic data and information. 7 Section 3. That a NEW SECTION be added to a NEW CHAPTER in title 49: 8 The operator of a data center shall pay for all fair, just, and reasonable costs 9 associated with the provision 9 of electricity to the data center. 10 A provider of electricity may not: shall establish and maintain separate terms and conditions 11 (1) Increase fees, rates, or surcharges imposed on residential customers for the 12 purpose of financing, offsetting, or subsidizing electric service applicable to a data center's infrastructure costs, 13 service demands, or utility consumption; or 14 (2) Allocate to residential customers center. The terms and conditions must require that 12 the data center reimburse any cost associated with the distribution, 15 generation, or transmission infrastructure, or any other cost attributable provider of electricity for all costs fairly attributed to the 16 13 data center. 17 center for service demand and utility consumption, including costs incurred to serve 14 the data center if the data center departs the system or materially reduces its load. 15 Section 4. That a NEW SECTION be added to a NEW CHAPTER in title 49: 18 16 The state may not preempt or otherwise limit the authority of the governing body 19 17 of a county, municipality, or other political subdivision to adopt ordinances and resolutions 20 18 limiting, prohibiting, or otherwise regulating the construction, development, or operation 21 19 of data centers. 22 26.729.44 2 135 Underscores indicate new language. Overstrikes indicate deleted language. 20 Section 5. That a NEW SECTION be added to a NEW CHAPTER in title 49: 21 26.729.45 2 135 Underscores indicate new language. Overstrikes indicate deleted language. Prior to commencing operation in this state, the operator of a data center shall 1 provide notice of projected water consumption to each local water provider in the area in 2 which the data center is proposed to be located. Each water provider receiving notice 3 pursuant to this section shall determine whether the data center's projected water 4 consumption is compatible with the local water supply and issue that determination in 5 writing to the operator. The state, or any political subdivision operator shall present a copy of each notice and determination 6 to the Board of Water Management. 7 If the board receives a determination from each applicable water provider that the 8 data center's projected water consumption is compatible with the local water supply, the 9 board must issue, to the operator and the general public, a written statement that the 10 operator has satisfied the requirements of this section. 11 Notwithstanding the board's issuance of a written statement pursuant to this 12 section, the data center may not consume an amount of the state, may not authorize or grant any 2 tax exemption local water supply exceeding 13 limits established by order of the board, after allocation to a residential and essential public 14 services. In establishing allocation limits under this section, the board shall seek to ensure 15 water availability and prevent disproportionate use of water by data center. 3 centers. 16 Section 6. That a NEW SECTION be added to a NEW CHAPTER in title 49: 4 Prior to commencing operation in this state, the operator of a data center shall 5 provide notice of projected water consumption to each local water provider in the area in 6 which the data center is proposed to be located. Each water provider receiving notice 7 pursuant to this section shall determine whether the data center's projected water 8 consumption is compatible with the local water supply and issue that determination in 9 writing to the operator. The operator shall present a copy of each notice and determination 10 to the Board of Water Management. 11 If the board receives a determination from each applicable water provider that the 12 data center's projected water consumption is compatible with the local water supply, the 13 board must issue, to the operator and the general public, a written statement that the 14 operator has satisfied the requirements of this section. 15 Notwithstanding the board's issuance of a written statement pursuant to this 16 section, the data center may not consume an amount of the local water supply exceeding 17 limits established by order of the board, after allocation to residential and essential public 18 services. In establishing allocation limits under this section, the board shall seek to ensure 19 water availability and prevent disproportionate use of water by data centers. 20 Section 7. That a NEW SECTION be added to a NEW CHAPTER in title 49: 21 The operator of a data center that is authorized to operate in this state pursuant 22 18 to this chapter, shall, at the time and in the manner prescribed by the Board of Water 23 19 Management, submit to the board a semi-annual report regarding the data center's water 24 20 use. The report must contain average usage data and certify compliance with this section. 25 21 The board shall make the usage data contained in the report available to the public. 26 22