Energy

HB 1301 requires large data centers (those with 20+ megawatts peak demand) in South Dakota to pay the full cost of electricity infrastructure upgrades they necessitate, including decommissioning expenses, and prohibits shifting these costs to other utility customers. Key provisions include mandating that data centers submit annual reports detailing their energy use, infrastructure needs, and renewable energy commitments, and requiring electric utilities to publish annual reports on large data center load forecasts and associated costs. The bill effectively imposes a moratorium on new large data center projects until these reporting and cost-sharing requirements are met. It directly affects large data center operators and electric utilities, ensuring they bear their own infrastructure and decommissioning costs without burdening other retail customers.

SB 235 prevents utilities from raising residential electricity rates to cover data center costs, requiring data centers to pay all associated infrastructure expenses directly. It mandates data center operators to report water usage to local providers and the state board, with public disclosure of semi-annual water consumption data. The bill preserves local government authority to regulate data center construction and operations, and exempts data center purchasing from certain taxes. These provisions directly affect residents (by shielding them from cost shifts), data center operators (requiring direct payment and reporting), and local governments (retaining regulatory power).

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.