SD utility regulator candidates clash over AI data center pause
Candidates for the South Dakota Public Utilities Commission are debating a proposed one-year moratorium on new artificial intelligence data centers in the state. The Democratic nominee supports the ban, citing concerns over electrical infrastructure strain and potential energy bill increases for residents. His Republican opponent calls the proposal reckless and believes existing state laws are adequate.
Frank Kloucek, a Democratic nominee for a South Dakota Public Utilities Commission seat and a former state lawmaker, has proposed a one-year moratorium on new artificial intelligence data centers across the state. Kloucek argues that these large data centers require substantial investments in electrical infrastructure, including generation and transmission, and contends that South Dakotans should not bear the cost of their development through higher energy bills.
Conversely, his Republican opponent, Don Haggar, has sharply criticized Kloucek's proposal, labeling it "reckless and pandering." Haggar maintains that the state already has sufficient laws in place to regulate the data center industry effectively, rendering a new ban unnecessary.