Union County
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Statewide
SB 135 (2026), the 'Data Center Bill of Rights for Citizens': signed by Gov. Rhoden in March 2026 and effective July 1; for data centers with peak demand of 10 MW or more it requires utilities to set separate service terms so costs are not shifted to other customers, adds water-use notice and reporting rules, and bars the state from preempting local data center regulation (codified at SDCL 49-50). A ban on state tax incentives was stripped before passage. (KELOLAND News, March 24, 2026; LegiScan, March 30, 2026; South Dakota Legislative Research Council, June 2026) HB 1038 (2026): signed; lets the PUC bill the actual cost of reviewing an electric service contract for a data center of 10 MW or more (SDCL 49-34A-56.1). (KELOLAND News, March 24, 2026; South Dakota Legislative Research Council, June 2026) South Dakota has no data center sales tax exemption: 2025 SB 177 (sales tax refund on data center equipment) failed 17-18 in the Senate, and 2026 HB 1005 (50-year sales and use tax exemption) died 9-3 in House State Affairs on Feb. 4, 2026. (South Dakota Legislature, 2025; South Dakota Searchlight, June 16, 2025; SDPB, Feb. 4, 2026) SB 239 (2026), which would have opened a separate reinvestment payment (tax rebate) track for large projects such as data centers, died when a Senate motion to reconsider failed 16-17 on Feb. 24, 2026. (LegiScan, Feb. 24, 2026; South Dakota Searchlight, Feb. 18, 2026) HB 1301 (2026), a statewide moratorium on new data center construction through June 2027, was killed 10-2 in House State Affairs (Feb. 19, 2026). (SDPB, Feb. 19, 2026) HB 1198 (2026), requiring facilities using 20 MW or more within a mile of another city or county to get that jurisdiction's conditional use permit, failed 21-41 on the House floor (Feb. 12, 2026). (KELOLAND News, Feb. 13, 2026) HB 1246 (2026), barring confidentiality agreements between governments and data center developers, failed 30-37 on the House floor (Feb. 20, 2026). (FastDemocracy (legislative journal summary), Feb. 20, 2026; South Dakota Searchlight, Feb. 18, 2026) PUC docket EL24-027: Leola Data Center's request for Montana-Dakota Utilities service in FEM Electric territory under SDCL 49-34A-56; settlement approved in September 2026. (South Dakota Public Utilities Commission, Sept. 1, 2026; SDPB, Sept. 9, 2026) PUC docket EL26-008: Black Hills Energy's request (filed March 19, 2026) for approval of a blockchain interruptible electric service agreement with an unnamed customer; pending, amended contract filed Aug. 19, 2026. (South Dakota Public Utilities Commission, March 19, 2026) PUC docket EL26-021: Otter Tail Power petition (filed July 27, 2026) for a new rate class and schedule for very large customers. (South Dakota Public Utilities Commission, Oct. 27, 2026) South Dakota data centers →