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Tense Senate vote exposes fault lines surrounding data centers
Missing lawmaker among the issues vexing proposed legislation that has failed
Feb. 24, 2026 at 11:33pm
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The fate of a bill tied to one of the most contentious subjects in the South Dakota Legislature this year – data centers – ended up in the hands of a senator that couldn't be located. Senate Bill 239 would provide relief for companies such as those operating data centers by allowing them to write off a certain percentage of the cost of purchasing large equipment. It failed its vote to be reconsidered 16-17 a day after it lost its first vote by the same margin.
Why it matters
The events in the Legislature the past few days reflect a larger battle going on over what action, if any, lawmakers should take in regulating and incentivizing an industry that could prove to be financially beneficial for the state. Residents have raised concerns over potential air and noise pollution, increases in utility bills, and the erosion of property rights, leading to a lack of trust in local government and a push for state intervention.
The details
Senate Bill 239 was spearheaded by Republican Sen. Casey Crabtree of Madison and underscores the division within the chamber between those who favor giving data center companies additional economic incentives to move to the Mount Rushmore state and those who believe more guardrails should be put in place and greater fiscal restraint exercised. Supporters argued the measures were a necessary step to bring South Dakota in line with other states, while detractors said it would create government overreach and allow Pierre to essentially pick winners and losers.
- The Feb. 24 vote was held up for nearly 40 minutes after the Senate voted to wait until they could find Republican Sen. John Carley of Piedmont, who could have potentially given the tying vote and leave Lt. Gov. Tony Venhuizen with the task of casting a tiebreaker.
- Senate Bill 239 failed its vote to be reconsidered 16-17 a day after it lost its first vote by the same margin.
The players
John Carley
A Republican senator from Piedmont who was missing during the crucial vote on Senate Bill 239, delaying the proceedings.
Tony Venhuizen
The lieutenant governor who would have had to cast a tiebreaker vote if Sen. Carley had been present.
Randy Deibert
A Republican senator from Spearfish who criticized Sen. Carley for not being present to represent his district.
Casey Crabtree
The Republican senator from Madison who spearheaded Senate Bill 239, which would provide relief for data center companies.
Chris Karr
The Republican Senate Pro Tempore from Sioux Falls who was among the detractors of Senate Bill 239, arguing it would create government overreach.
Taffy Howard
The Republican senator from Rapid City who was also a detractor of Senate Bill 239, saying it prioritized money over the quality of life and health of citizens.
Ryan Budmayr
The CEO and president of the South Dakota Chamber of Commerce and Industry, who believes the concerns over Senate Bill 239 are misguided and that the state needs to be competitive to attract data center investments.
Liz Tiger
A representative of Dakota Rural Action, a conservation group that has raised concerns about the potential drawbacks of data centers, including air and noise pollution, increases in utility bills, and the erosion of property rights.
What they’re saying
“This is just proof that we should be in our seats and represent our districts and not disappear.”
— Randy Deibert, Republican Senator from Spearfish
“The question you have to ask is, 'Do the people come first in this state or does money come first?' Is that always going to be our top priority or are we going to think about the quality of life and health of our citizens?”
— Taffy Howard, Republican Senator from Rapid City
“Generally the folks I talk to are very much for smaller government and very much for local government, but you're seeing this level of distrust because other projects ... have been misrepresented.”
— Liz Tiger, Representative of Dakota Rural Action
“I'm not saying we should put all our eggs in the data center bucket. But we should let the counties and communities decide if one is right for them.”
— Ryan Budmayr, CEO and President of the South Dakota Chamber of Commerce and Industry
“More public education and understanding on how these types of buildings work would be beneficial to the people South Dakota. We're talking economic development with a group of people that have felt taken advantage of before. Now is probably the time to have a better conversation.”
— Liz Tiger, Representative of Dakota Rural Action
What’s next
The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.
The takeaway
This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.
