South Dakota lawmakers reject statewide pause on new hyperscale data centers

Melissa Palmer

February 19, 2026

South Dakota’s attempt to pause new 50 MW+ hyperscale data centers for a year just died in committee after procedural confusion.

The bill would have slowed large AI-class builds that strain power, water, and local infrastructure while rules caught up.

Industry and local officials pushed back, arguing siting and moratoriums should stay in local hands, not at the state level.

For operators and GPU buyers, this keeps the door open for more rapid hyperscale capacity build-out in the state.

For utilities and communities, it means pressure will come project by project instead of under a statewide planning framework.

Policy risk is still on the table, but the immediate regulatory overhang for big data center projects here just dropped.

The article is worth a read to track how state-level politics may shape future AI power and land constraints.

Source: Moratorium on Hyperscale Data Centers Fails After Confusing Series of Votes | NEWS RADIO KOTA-AM 1380AM/100.7FM

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