limit costs and risks associated with electricity use by data centers and impose a moratorium.
Feb 18, 2026 · Not enacted · Deferred to 41st day
Rep. Erin Healy · Sponsored / Sen. Liz Larson · Co-sponsored / Rep. Erik Muckey · Co-sponsored
FactVote reviewed summary
HB 1301 proposed requiring electric utilities, when establishing or negotiating rates or tariffs for any data center, to allocate its full service, infrastructure and decommissioning costs to that data center and protect other retail customers from transferred costs and stranded-asset risks. A separate proposed moratorium through June 30, 2027 covered new construction or expansion of large data centers, including expansions that would bring a smaller center to the threshold of at least 20 megawatts of peak demand. The committee deferred the bill to the 41st legislative day on February 18, 2026. It was not enacted and created no moratorium or rate protection.
The House State Affairs deferred the bill to the 41st legislative day on 2026-02-18. The 2026 regular session has ended without enactment of this measure.
Why this record is included
The EIA fact measures average retail electricity revenue per kilowatthour across customer sectors. Proposed rate and tariff requirements concern allocation of electric-service costs between data centers and other customers. The bill was not enacted and did not establish new rates, savings or a change in statewide prices. This relationship does not establish causation. Actions after the measurement period cannot explain its earlier value.
Retained South Dakota evidence context: Average retail electricity price. This record’s connection to the topic does not establish an effect on the measured result.
Section 1. That a NEW SECTION be added to chapter 49-34A: Terms used in this Act mean: (1) "Approval authority," for an electric utility that is: (a) A state or rural electric cooperative, the board of directors; or (b) Owned by a municipality or other political subdivision of this state, the governing body; (2) "Data center," any facility that is used as a centralized repository for the dissemination, management, processing, and storage of electronic data and information; and (3) "Large data center," a data center with a peak electricity demand of twenty megawatts or greater. Section 2. That a NEW SECTION be added to chapter 49-34A: When establishing or negotiating a rate or tariff for any data center, an electric utility shall ensure that: (1) The data center pays the full cost of providing electric service to the data center, including the cost of any infrastructure upgrade necessitated by the operation of the data center; (2) The cost of providing electric service to the data center is not paid for by other retail customers; (3) The costs and risks of infrastructure upgrades are not transferred to other retail customers during the operation of the data center; (4) Other retail customers are not placed at financial risk for paying stranded costs associated with providing electric service to the data center if it prematurely ceases operating; and (5) The data center bears all costs of decommissioning the data center. Section 8. Notwithstanding any other provision of law, a moratorium is imposed on any new construction or expansion of a large data center in this state. The moratorium includes the expansion of any data center that is not currently a large data center but, if expanded, would become a large data center. The moratorium is in effect through June 30, 2027.Review official supporting evidence ↗