South Dakota Senate Committee Rejects Data Center Moratorium

Proposal to pause large data center construction fails amid industry, local government opposition

Feb. 25, 2026 at 5:15pm

Got story updates? Submit your updates here. ›

A bill that would have placed a moratorium on the construction of large data centers in South Dakota failed to advance in the state Senate's State Affairs Committee on Wednesday. The measure aimed to give local governments more time to study the impacts of these massive facilities, which can consume over 50 megawatts of power. However, it faced opposition from data center operators and some local officials who argued the projects should be controlled at the local level, not by the state.

Why it matters

Data centers have become an increasingly important part of the modern economy, but their large energy demands and physical footprint can also strain local infrastructure and resources. This debate highlights the tensions between state oversight and local control when it comes to regulating these critical but impactful facilities.

The details

The proposed moratorium would have paused construction on any data centers consuming more than 50 megawatts of power, giving counties, cities and local utilities more time to study the best ways to accommodate these massive projects. However, the bill faced opposition from two key groups: paid lobbyists representing the data center companies themselves, and local officials who believe the facilities should be regulated at the municipal or county level, not by the state.

  • The Senate State Affairs Committee considered the moratorium bill on Wednesday, February 19, 2026.

The players

South Dakota Senate State Affairs Committee

The state Senate committee responsible for considering the data center moratorium legislation.

Data center operators

Companies that operate large data centers in South Dakota, who opposed the moratorium through paid lobbyists.

Local government officials

Municipal and county leaders who argued the data centers should be regulated at the local level, not by the state.

Got photos? Submit your photos here. ›

The takeaway

This debate highlights the ongoing tensions between state and local control when it comes to regulating the growth of data centers and other large-scale infrastructure projects. As these facilities become more prevalent, policymakers will need to carefully balance the economic benefits with the potential impacts on local communities.