Why are states, including SD, considering banning new data centers
News Clipaberdeennews.com·SD·3/12/2026
Several states, including South Dakota, are considering or have proposed legislation to temporarily ban new data center development due to concerns over rising electricity prices, tax breaks for companies, and environmental effects. While no states have successfully enacted a moratorium, some cities and counties have banned new data center projects in the past year.
moratorium
Gov: South Dakota Senate State Affairs Committee, Pennsylvania, Minnesota
Lawmakers in at least 11 states, including South Dakota, have introduced legislation to temporarily ban new data centers. Concerns over rising utility bills, tax breaks for companies, and environmental effects are driving this trend. While some states have announced plans for moratoriums, no such bans have been successfully enacted yet. Some cities and counties have implemented temporary bans on data center construction, but others have faced legal challenges to such measures. Beyond moratoriums, state and local leaders are seeking to pass data center regulations to protect consumers and prevent revenue loss from tax breaks.