South Dakota Passes Data Center Bills, Tribes Raise Concerns

New laws aim to regulate energy and water usage, but Indigenous groups say they were not consulted

Apr. 3, 2026 at 12:53pm

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A highly detailed, glowing 3D illustration of a data center server rack, with pulsing neon cyan and magenta lights illuminating the complex digital infrastructure, conceptually representing the tensions between technological progress and environmental stewardship.As South Dakota grapples with the expansion of data centers, Indigenous groups raise concerns over the industry's impact on natural resources and tribal sovereignty.Buffalo Today

South Dakota lawmakers have passed two bills that place limits on the data center industry, rejecting a one-year moratorium. While backers say the bills will bring more jobs and tax revenue, opponents argue the energy and water usage of large data centers will raise costs for residents. Indigenous groups, led by the Honor the Earth organization, say the state failed to consult with tribal governments and that the laws infringe on treaty rights.

Why it matters

The dispute over data centers in South Dakota highlights the tensions between economic development, environmental impact, and tribal sovereignty. As the tech industry continues to expand, Indigenous communities are pushing back against projects that could threaten their lands, resources, and self-determination.

The details

The new laws, Senate Bill 135 and House Bill 1038, require data centers with a peak demand of 10 megawatts or greater to pay for any increased electricity rates and undergo reviews of their actual energy and water usage. The bills also prohibit the state from limiting local governments' ability to regulate or ban data centers. However, a proposed one-year moratorium on new data center construction was rejected.

  • On March 24, 2026, South Dakota Gov. Larry Rhoden signed the two data center bills into law.
  • On April 7, 2026, the Indigenous-led nonprofit Honor the Earth will appear at a public hearing organized by the Standing Rock Sioux Tribe to argue for a moratorium on new data centers in tribal lands and treaty territory.

The players

Honor the Earth

An Indigenous-led nonprofit organization that supports Indigenous land conservation and is leading the effort to oppose large data centers in South Dakota.

Joseph White Eyes

An organizer with Honor the Earth who lives in Eagle Butte, South Dakota, and says laws affecting tribal lands and resources need to respect government-to-government relationships.

Standing Rock Sioux Tribe

The tribe that is organizing a public hearing on April 7, 2026, to discuss a moratorium on new data centers in tribal lands and treaty territory.

Oceti Sakowin Treaty Council

The council that passed a resolution at its 5th annual conference in Rapid City in December, opposing the construction and operation of data centers in treaty territory.

Sen. Red Dawn Foster

The state senator who represents Oglala Lakota County and called the failure of a bill that would have incentivized large data centers a "critical victory for taxpayers."

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What they’re saying

“Passing something at this capacity without consultation of any tribal government is a slap in our face.”

— Joseph White Eyes, Honor the Earth organizer

“Treaty territory is anywhere on the eastern banks of the Missouri River to the original treaty territories.”

— Joseph White Eyes, Honor the Earth organizer

“We made important strides with the passage of the Data Center Bill of Rights, helping to ensure greater transparency, accountability and local input for future projects.”

— Sen. Red Dawn Foster

“We should not be subsidizing big tech.”

— Sen. Red Dawn Foster

“This effort is about protecting South Dakota's water, land and way of life. These are not abstract concerns, they are the foundation of our rural communities, our agricultural economy and our future. Any development must respect and preserve these essential resources.”

— Sen. Red Dawn Foster

What’s next

On April 7, 2026, the Standing Rock Sioux Tribe will host a public hearing where Honor the Earth will argue in favor of a moratorium on new data centers in tribal lands and treaty territory.

The takeaway

The dispute over data centers in South Dakota highlights the ongoing tensions between economic development, environmental impact, and tribal sovereignty. As the tech industry continues to expand, Indigenous communities are pushing back against projects that could threaten their lands, resources, and self-determination.