Utility Tariff Analysis · Updated September 2026

South Dakota's Data Center Bill of Rights for Citizens (SB 135): What It Means for AI Data Centre Siting in South Dakota

September 18, 2026 6 min read Strategic Crypto Reserve Data Centre Infrastructure

Data centres, addressed through consumer-protection legislation rather than a load-size threshold are addressed under South Dakota's SB 135, the 'Data Center Bill of Rights for Citizens,' which requires electricity providers to establish separate terms and conditions for data centre customers — a consumer-protection-first framing distinct from the minimum-billing-demand tariffs most other states have adopted.

The Tariff Explained Model a SD Build
South Dakota's Data Center Bill of Rights for Citizens (SB 135) — AI data centre infrastructure

South Dakota's Data Center Bill of Rights for Citizens (SB 135)

SD

Otter Tail Power / NorthWestern Energy

SB 135

Regulatory docket / filing reference

Data centres, addressed through consumer-protection legislation rather than a load-size threshold

Who the tariff applies to

Data centres, addressed through consumer-protection legislation rather than a load-size threshold are addressed under South Dakota's SB 135, the 'Data Center Bill of Rights for Citizens,' which requires electricity providers to establish separate terms and conditions for data centre customers — a consumer-protection-first framing distinct from the minimum-billing-demand tariffs most other states have adopted.

Also active in South Dakota: Otter Tail Power, which also serves large-load customers in Minnesota and North Dakota under its Super Large General Service framework, is active in South Dakota's data centre pipeline, including a $16 billion, 430 MW Applied Digital project in Toronto, SD.

Named Projects Already Underway

CustomerLocationDetails
Applied DigitalToronto, SD$16 billion, 430 MW data centre project

Figures compiled from the Edison Electric Institute's "Large Load Projects and Tariffs" (September 2026) member-company summary and public regulatory filings. Confirm current tariff terms directly with Otter Tail Power / NorthWestern Energy and the relevant state public utility commission before relying on any figure for a capital decision.

Weighing South Dakota against another state or a Canadian province with a different rate and interconnection picture entirely? Run both sides of the comparison through our licensed AI data centre cost configurator — it applies each jurisdiction's actual power rate, tax treatment and large-load tariff rules to the same seven build configurations.

Model This State on Your Own Site

Every figure above comes from the same power-cost and tariff dataset behind the SCR AI Build Configurator — a licensed, embeddable widget that models seven data centre build configurations against all nine Canadian provinces and all 50 US states plus DC, returning capital expenditure by line item, energy cost, revenue by commercial structure, EBITDA and payback.

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Frequently Asked Questions

What is South Dakota's Data Center Bill of Rights for Citizens (SB 135)?

Data centres, addressed through consumer-protection legislation rather than a load-size threshold are addressed under South Dakota's SB 135, the 'Data Center Bill of Rights for Citizens,' which requires electricity providers to establish separate terms and conditions for data centre customers — a consumer-protection-first framing distinct from the minimum-billing-demand tariffs most other states have adopted.

Why did Otter Tail Power / NorthWestern Energy introduce this large-load structure?

To ensure the cost of new generation, transmission and distribution infrastructure built to serve very large customers, chiefly hyperscale data centres, is paid for by those customers rather than spread across the general rate base of residential and small commercial ratepayers.

What large data centre projects are already active in South Dakota?

Otter Tail Power, which also serves large-load customers in Minnesota and North Dakota under its Super Large General Service framework, is active in South Dakota's data centre pipeline, including a $16 billion, 430 MW Applied Digital project in Toronto, SD.

Does this tariff replace South Dakota's standard commercial and industrial rates?

No. South Dakota's Data Center Bill of Rights for Citizens (SB 135) sits above Otter Tail Power / NorthWestern Energy's standard commercial and industrial rate schedules and applies specifically to customers that meet or exceed the large-load threshold described above. Smaller commercial and industrial loads continue to be billed under existing rate schedules.

How can I model a South Dakota data centre build against this tariff and other states?

The SCR AI Build Configurator applies South Dakota's power cost, tax treatment and large-load tariff rules alongside all other US states and Canadian provinces, so a South Dakota scenario can be compared line-by-line against any alternative site.