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South Dakota Senate Rejects Data Center Tax Exemption and Power Deregulation Bills

DATA AND AI INFRASTRUCTURE

The South Dakota Senate rejected two bills critical to attracting data centers: Senate Bill 239, proposing a 30-year sales tax exemption for large projects, failed with a 17-16 vote, while Senate Bill 193, concerning backup generator regulations, resulted in a 17-17 tie. Both bills required 18 votes for passage.

The tax exemption aimed to assist in competing for large projects and preserving local jobs, but faced opposition due to concerns over tax policy governance and potential revenue loss. The sponsor indicated intentions to reconsider both bills.

South Dakota Senate Rejects Data Center Tax Exemption and Power Deregulation Bills
Feb 26, 2026, 6:27 AM

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