Gubernatorial Candidate Opposes Data Center Tax Breaks

State House Speaker Jon Hansen criticizes tax relief measures funded by sales taxes.

Apr. 14, 2026 at 6:07pm

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A moody, cinematic painting of a solitary data server rack standing in an empty government office, the warm light and deep shadows creating a sense of isolation and contemplation around the technology.As the debate over data center tax breaks heats up in the South Dakota governor's race, the issue exposes tensions over the role of big tech in local communities.Sioux Falls Today

In a debate among Republican gubernatorial candidates in Sioux Falls, South Dakota, State House Speaker Jon Hansen voiced opposition to providing tax breaks for large tech companies building data centers in the state. Hansen argued that South Dakotans should not have to subsidize 'big tech billionaires' through these tax incentives, which he said have led to significant increases in electricity bills for residents.

Why it matters

The debate over tax incentives for data centers has become a key issue in the South Dakota governor's race, with candidates taking different stances on whether the state should offer such breaks to attract investment from major tech firms. Hansen's position reflects concerns from some citizens about the impact of data centers on local electricity costs.

The details

During the debate, Hansen criticized property tax relief measures passed by the state legislature this year, saying they were funded by increases in sales taxes. He specifically called out efforts to provide tax breaks for 'hyper scale data centers', arguing that the state should not be subsidizing companies like Meta (Facebook) CEO Mark Zuckerberg. Hansen said there had been 'massive increases in electricity bills' in areas where data centers have been constructed.

  • The gubernatorial debate took place on Monday night in Sioux Falls.
  • The South Dakota legislature passed property tax relief measures earlier this year.

The players

Jon Hansen

The Republican State House Speaker and gubernatorial candidate who opposes tax breaks for data centers in South Dakota.

Mark Zuckerberg

The CEO of Meta (Facebook), which Hansen cited as an example of a 'big tech billionaire' that should not receive tax breaks from the state.

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What they’re saying

“I don't think South Dakotans should have to give Mark Zuckerberg and other big tech billionaires massive tax breaks, so when those bills came before the legislature we were able to kill those bills.”

— Jon Hansen, Republican Gubernatorial Candidate

What’s next

Voters in South Dakota will choose the next governor in the November 2026 election.

The takeaway

The debate over tax incentives for data centers has become a divisive issue in the South Dakota governor's race, with candidates like Jon Hansen arguing that the state should not be subsidizing large tech companies at the expense of residents facing higher electricity costs.