Data center official says other states offer better incentives than SD • South Dakota Searchlight

A data center industry executive highlighted South Dakota's lack of competitive incentives compared to states like North Dakota, which offers sales tax exemptions on essential equipment. This disparity could lead to significantly higher costs for building data centers in South Dakota. A proposed bill for sales tax refunds on data center equipment failed in the state Senate, raising concerns about tax fairness and energy consumption. Despite these challenges, South Dakota boasts advantages like a cold climate and renewable energy sources that could attract data center development.