Differences in data center, AI priorities on display in PUC race

Differences in data center, AI priorities on display in PUC race

News ClipSDPB·SD·9/2/2026

A Democratic candidate for South Dakota's Public Utilities Commission has proposed a year-long moratorium on data center development, citing concerns over utility prices and water usage. His Republican opponent argues that existing state regulations, including the "Data Center Citizens Bill of Rights," are sufficient. The debate is a key issue in the upcoming state election.

moratoriumelectricitywatergovernment
Gov: Public Utilities Commission, State House of Representatives

The upcoming Public Utilities Commission (PUC) election in South Dakota features a significant debate on hyperscale data center development, highlighting differing approaches to managing their impact. Democratic candidate Frank Kloucek has proposed a year-long moratorium on data center construction across the state. Kloucek, a former State House of Representatives member, argues that this pause would allow time for research and preparation, similar to a past moratorium on uranium mining, to prevent placing consumers of electricity, natural gas, and water at risk. He contends that data center impacts on utility prices, water usage, and lifestyle quality are critical concerns for South Dakotans and represent "the number one issue facing South Dakota right now."

Conversely, his Republican opponent, Don Haggar, also a former State House member, questions the necessity of a moratorium. Haggar believes South Dakota already has adequate regulations in place, specifically referencing the "Data Center Citizens Bill of Rights." This bill, he explained, aims to prevent data center project costs from being passed onto consumers or ratepayers, mandates annual water usage reporting, and requires local approval before a data center can be established in a community. The candidates' opposing views on data center regulation are central to their campaigns for the PUC election in November.