Bill > HB1301

This bill aims to control the costs and risks associated with electricity usage by data centers, which are facilities for storing and processing electronic data, by defining a "large data center" as one with a peak electricity demand of twenty megawatts or greater. It mandates that electric utilities ensure data centers pay the full cost of their electricity, including any necessary infrastructure upgrades, and that these costs are not passed on to other customers. The bill also requires large data centers to explore using private electricity suppliers or self-generation to reduce their reliance on the utility and prevent "stranded costs" (costs incurred for infrastructure that becomes unused if a data center closes prematurely) from affecting other customers. Operators of large data centers must submit annual reports detailing their operations, energy usage, and plans for decommissioning, and are responsible for all decommissioning costs, including posting a security bond. Furthermore, the bill imposes a moratorium, a temporary halt, on the construction or expansion of new large data centers, or data centers that would become large due to expansion, until June 30, 2027.

Government Affairs

https://sdlegislature.gov/#/Session/Bill/27287