PIERRE, S.D. – A South Dakota Public Utilities Commission race is highlighting a growing debate over artificial intelligence data centers and their impact on the state’s energy and water resources.
Democratic candidate Frank Kloucek is calling for a one-year moratorium on new AI data center projects, arguing the state needs more time to study their impact on electrical infrastructure and ensure utility ratepayers aren’t left covering costs.
His Republican opponent, Don Haggar, opposes the proposal, calling it reckless and saying new laws passed earlier this year already provide oversight for large data center projects. Those laws require utilities and water providers to evaluate the impact of proposed facilities and ensure companies reimburse costs tied to their developments.
Kloucek argues the new regulations don’t go far enough and says a temporary pause would give South Dakota more time to evaluate the industry.
The issue comes as states nationwide compete for large-scale data center projects that supporters say bring jobs and tax revenue, while critics raise concerns about energy consumption, water use, and infrastructure costs.
South Dakota voters will decide the PUC race on November 3.
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