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SD SB235
Bill
Status
2/4/2026
Primary Sponsor
Casey Crabtree
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AI Summary
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Removes existing sales and use tax exemptions on purchases made by data centers by striking those exemption provisions from chapters 10-45 and 10-46
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Requires data center operators to pay all costs associated with their electricity provision and prohibits electricity providers from increasing residential customer fees, rates, or surcharges to finance, offset, or subsidize data center infrastructure, service demands, or utility consumption
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Preserves local government authority by prohibiting the state from preempting counties, municipalities, or other political subdivisions from adopting ordinances limiting, prohibiting, or otherwise regulating the construction, development, or operation of data centers
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Requires data center operators to provide projected water consumption notices to local water providers before commencing operations, with the Board of Water Management overseeing a compatibility determination process and setting water consumption limits that prioritize residential and essential public services
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Mandates semi-annual water usage reporting by data center operators to the Board of Water Management, including average usage data and compliance certification, with the data made publicly available
Legislative Description
Protect residents from increased utility costs and utility shortages caused by data centers, to clarify authority to regulate data centers, and to modify provisions pertaining to the purchasing of goods and services by a data center.
Last Action
State Affairs Deferred to the 41st legislative day, Passed, YEAS 5, NAYS 4. S.J. 27
2/18/2026