The proposed bill establishes a one-year moratorium on the construction or expansion of hyperscale data centers in South Dakota. This moratorium applies not only to new hyperscale data centers but also to any existing data centers that, if expanded, would meet the criteria of a hyperscale data center. The moratorium is set to remain in effect until June 30, 2027.

Additionally, the bill defines a "hyperscale data center" as a centralized repository for the storage, management, dissemination, and processing of electronic data and information, specifically those with a peak electrical demand of fifty megawatts or greater. This legislative action aims to regulate the growth of such facilities within the state during the specified period.