Data center restrictions signed into South Dakota law after push for incentives failed

By: Joshua Haiar

Outlets: South Dakota Searchlight

Published: March 24, 2026

Words: 338

Last Updated: 2 months, 3 weeks ago

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After lawmakers rejected proposals to incentivize the construction of large data centers in South Dakota, the governor signed a bill into law Tuesday that will place new limits on the industry.

The law applies to data centers with a peak electrical demand of 10 megawatts or greater. It will require data center companies to ensure their water use does not overburden local resources and to pay for the electrical infrastructure costs attributable to them. …

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