Data center tax break bill moves through South Dakota house

Provide a sales and use tax exemption for goods and services related to data center operations.

Introduced· 2026-01-13

Who's it for

Who's it for: Data centers

What it means for you

5/10Mixed

Mixed: some good, some bad ·

Cost shift

Draft summary, still being checked against the official bill text. Read the source to confirm.

If passed, the bill would let data center owners skip sales tax on equipment and services, saving them money but costing the state revenue.

Our take

What we think, in plain words.

Citizens should watch because the tax break could mean less money for schools and roads, while data center firms get a big discount and may attract more investment.

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The facts

What the bill actually says, no spin.

The bill proposes a sales and use tax exemption for goods and services used in data center operations.
It applies to purchases made by data center owners and operators in South Dakota.
The exemption would reduce state tax revenue from those purchases.
The bill has been introduced and referred to the House State Affairs Committee.
It is sponsored by several Republican legislators.