Johnson Announces “Data Centers Done Right” Initiative
Sioux Falls, S.D. – Today, U.S. Representative Dusty Johnson (R-S.D.) announced the “Data Centers Done Right” initiative.
“President Trump has called for an ‘era of American AI dominance.’ We cannot allow China or others to dominate artificial intelligence, and there is a role for South Dakota in that race,” said Johnson. “As Governor, I will ensure that data centers constructed in South Dakota make our state stronger. South Dakota can reduce property taxes and be a national leader in the AI revolution, but only if we have vision, drive, and a plan. With the ‘Data Centers Done Right’ initiative, we can make sure our state is home to data centers that make our electrical grid, water supply, quality of life, and economy stronger. Only projects that contribute more than they take will be eligible.”
Currently, South Dakota is not a competitive location for data centers because the state’s taxes on data centers are significantly higher than in other states. In fact, South Dakota is one of only two states in the region that charge taxes on electronic equipment. State law currently allows an optional rebate of those taxes, but the lack of certainty on that tax treatment has driven projects elsewhere.
Johnson’s “Data Centers Done Right” initiative will convert the current permissive tax rebate on electronic equipment to a standard rebate or exemption for eligible projects which meet certain requirements. Key requirements include:
- Power Use Protections—Before projects can be deemed eligible, it must be determined that the project “will not impose an undue burden on existing electric users” in South Dakota.
- Water Use Protections—Before projects can be deemed eligible, it must be determined that the project “will not impose an undue burden on water quality or existing water users” in South Dakota.
- Tax Benefits—Before projects can be deemed eligible, it must be determined that even after the rebate is granted, the project “would pay substantial property taxes to county, school, and other local governments,” and “would pay substantial sales taxes to state government” over the course of the next five years.
- Job Benefits—Before projects can be deemed eligible, it must be determined that the project “will create jobs with an average total compensation greater than the average total compensation of hourly workers in that area.”
Once implemented, the “Data Centers Done Right” initiative could result in the construction of AI factories that collectively pay more than $200 million in property taxes to state and local governments over the next 10 years. Data centers are a critical component of AI dominance, and when sited correctly, they provide tremendous benefit to local communities. For example, an AI data center proposed for Deuel County would pay an estimated $5 million in property taxes annually. The current annual budget for Deuel County is $11 million, and the budget for the Deubrook School District is $3.4 million.
Over the next few months, Johnson will work with South Dakotans, including state legislators like Representative Kent Roe, to develop additional details and legislative language needed to make “Data Centers Done Right” a reality.
To learn more about “Data Centers Done Right,” please click here.
###
Imagine if South Dakota had this type of leadership. Actual solutions, plans and a vision. Refreshing.
Brilliant!
He’s getting ahead of Rhoden on every issue.
I’m sure Dusty has had national security level type briefings on data centers and can see the whole picture. He gets it.
It’s nice to see a gubernatorial candidate saying “yes” to something if the right conditions are met. Seriously, what have Hansen and Doeden actually said “yes” to?
Pretty sure the only think Doeden has said yes to is lunch.
When is Sandy going to roll out her plan of computers in every classroom?
Leadership
As was said, this is what leadership looks like
Dusty still believes Biden was leading the country when he was president.
Economic growth isn’t just about bigger numbers—it’s about lasting opportunity for families and communities. The right projects strengthen our tax base, generate good jobs, and keep young people here at home. That means more resources for local schools, better infrastructure, and breathing room on property taxes.
The proposed data center in Deuel County shows what’s possible. If done right, the benefits don’t just last years—they echo across generations. Responsible development is how South Dakota doesn’t merely survive—it thrives.
Fred, Representative Roe has been a champion on this issue and spent a great deal of time working toward a successful project. When it gets done, we should all be thanking him for his work!
Dusty and Roe, getting things done.
There’s a reason why some communities flourish and others die. It’s because the people living in the thriving communities see the need for new and different opportunities. No to everything equals death not wealth
Rhoden must have bad advisors.
Rhoden shouldn’t ever be able to claim victory about data centers. If he was a capable Governor this last session, the Deuel county project would already be started. He coasted during session then paraded around the state pretending to be open for opportunity when all he shows is that he is the opposite of open for opportunity. An orange is an orange even if he says he is a banana.
Great job Representative Roe for leaning forward on this important issue for Deuel County, District 4, and South Dakota. I am excited to see what can be done in 2026 to move this along.
Absolutely agree!
Disappointing that he’s silent on the issue of providers jacking up residential electric rates while freezing commercial ones.
People exist to service the technocrats.
PUC handles that one, go talk to them they are an independent body.
Passing the buck already I see.
If you think the governor should control utility rates, lobby your legislators to post a constitutional amendment to dissolve the PUC and transfer that authority over to the governor. In my opinion, it shouldn’t be the governors role.
That’s a PUC issue.