SB 135 South Dakota Senate · 2026 Regular Session

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

SB 135 requires data center operators to pay all electricity costs associated with their facilities, preventing utilities from raising residential rates to cover these expenses (Section 3). It also prohibits tax exemptions for data centers (Section 5) and ensures local governments retain authority to regulate data center development (Section 4). The bill mandates data centers to report projected water usage to local providers and the Board of Water Management before operation, with annual reports on actual consumption (Sections 6-7), ensuring water allocation prioritizes residential and essential services. This directly affects data center operators, utilities, and South Dakota residents by limiting cost-shifting and protecting local resource management.
Bill status signed all 5 stages cleared
Introduction
Jan 2026
Committee Review
Mar 2026
Senate Passage
Feb 2026
House Passage
Mar 2026
Signed into Law
Mar 2026
Introduced Jan 27, 2026 Signed Mar 30, 2026
Maddy AI version diff · 3 comparisons

What changed between versions

House State Affairs Engrossed Enrolled · 5 edits · Mar 11, 2026
MODERATE
This bill transforms from a browser error page into a complete legislative act designed to protect South Dakota residents from utility costs and shortages caused by data centers. It establishes a new legal definition for data centers, mandates that data centers pay for their full impact on the power grid, and requires strict water usage reporting and approval before construction.
Scope change
The bill's scope expanded from non-existent to a comprehensive regulatory framework covering electricity pricing, local government authority, and water management for large-scale data facilities.
DEFINITION

Added a specific definition for 'data center' as a facility with a peak demand of ten megawatts or greater.

REQUIREMENT

Requires electricity providers to create separate terms for data centers, ensuring they reimburse the utility for all costs attributed to their high energy consumption.

Prohibits the state from stopping local governments (counties or cities) from passing laws that limit or ban data centers.

Mandates that data center operators notify local water providers of projected water use and obtain written approval from the Board of Water Management before operating.

ENFORCEMENT

Requires data centers to submit semi-annual public reports on their water usage to ensure compliance with local supply limits.

Floor votes · Senate Feb 20, 2026 · House Mar 5, 2026

How they voted

340
Passed · 1 other
Total votes 35
Feb 20, 2026
D Democratic3
3 Yea
100% Yea
R Republican32
31 Yea 1
96% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
20
Key actions
12
Committee
4
Amendments
2
Mar 30, 2026
Signed into law
Signed by the Governor on 2026-03-30 S.J. 549
executive
Mar 11, 2026
Lower · Passed
Signed by the Speaker H.J. 560
lower
Mar 11, 2026
Lower · Passed
Signed by the President S.J. 525
lower
Mar 10, 2026
Lower · Passed
Senate Concurred in amendments , Passed, YEAS 33, NAYS 1 S.J. 511
lower
Mar 5, 2026
Lower · Passed
House of Representatives Do Pass Amended , Passed, YEAS 60, NAYS 7 H.J. 523
lower
Mar 5, 2026
House · Passed
House Vote: pass (60-7-3)
house
Mar 2, 2026
Lower · Passed
Certified uncontested, placed on consent , Passed,
lower
Mar 2, 2026
Lower · Passed
State Affairs Do Pass Amended , Passed, YEAS 11, NAYS 0
lower
Mar 2, 2026
Introduced
State Affairs Motion to amend , Passed, Amendment 135G
lower
Feb 23, 2026
Introduced
First read in House and referred to House State Affairs H.J. 416
lower
Feb 20, 2026
Upper · Passed
Senate Do Pass Amended , Passed, YEAS 34, NAYS 0 S.J. 343
upper
Feb 20, 2026
Introduced
Senate Motion to amend , Passed, YEAS 30, NAYS 4 S.J. 343 Amendment 135F
upper
Feb 20, 2026
Senate · Passed
Senate Vote: pass (34-0-1)
senate
Feb 19, 2026
Upper · Passed
Senate Deferred to another day , Passed, S.J. 309
upper
Feb 18, 2026
Upper · Passed
State Affairs Do Pass , Passed, YEAS 5, NAYS 4 S.J. 25
upper
Jan 27, 2026
Introduced
First read in Senate and referred to Senate State Affairs S.J. 120
upper
18 primary · 0 co-sponsors

Sponsors