PUC Candidates Clash Over Proposed Data Center Moratorium in South Dakota
A South Dakota Public Utilities Commission race is highlighting a debate over a proposed one-year moratorium on new AI data center projects. Democratic candidate Frank Kloucek supports the moratorium to study impacts on energy and water, while Republican Don Haggar opposes it, citing existing regulations. Voters will decide on November 3.
The South Dakota Public Utilities Commission (PUC) election features a significant debate regarding the development of AI data centers in the state. Democratic candidate Frank Kloucek is advocating for a one-year moratorium on new AI data center projects, arguing that the state requires more time to assess their potential strain on electrical infrastructure and to prevent utility ratepayers from incurring unforeseen costs.
Conversely, Republican candidate Don Haggar opposes Kloucek's proposal, labeling it as rash. Haggar contends that new laws enacted earlier this year are sufficient for overseeing large data center projects, as they mandate utilities and water providers to evaluate project impacts and ensure companies cover associated development costs. Kloucek, however, believes these current regulations are inadequate, asserting that a temporary pause would allow South Dakota to better understand and adapt to the industry's demands.
This discussion unfolds amidst a national competition among states to attract data center projects, which proponents praise for bringing jobs and tax revenue, while critics express apprehension over high energy and water consumption, as well as infrastructure expenses. South Dakota voters are slated to cast their ballots for the PUC race on November 3.