How two new data center laws impact South Dakota

South Dakota Governor Larry Rhoden signed two data center-related bills into law this week, following a Sioux Falls City Council vote in favor of rezoning land for a proposed data center site. The debate around data centers had been a widely discussed topic in the state, culminating in these legislative actions. One new law, with an effective date of July 1, grants the Public Utilities Commission (PUC) the authority to assess the actual costs to data centers with peak demands of 10 megawatts or greater. According to PUC Vice Chairperson Christy Feig, this ensures that potential data centers will pay their fair share, covering the costs of reviews rather than burdening residential customers. The second law, also taking effect July 1, specifically addresses data centers requiring 10 or more megawatts. Its primary purpose is to protect residents from potential increases in utility costs and shortages. Chris Tutor, a public relations officer with Peace River Electric, noted that this legislation aligns with an initiative his co-operative established almost a year ago to serve data centers without negatively impacting other members. Mike Byrnes, CEO of the Economic Development Professionals Association of South Dakota, expressed a positive outlook on both laws, viewing them as beneficial for economic development and providing certainty for data center developers. Although two major proposed data center projects were discussed for Duel County and Sioux Falls, the Duel County project is currently unlikely to move forward.