A bill that would have created a 50-year sales tax break on equipment and software purchases for data centers was stopped at the committee level on Wednesday at the South Dakota Capitol in Pierre.

Members of the House State Affairs Committee voted 9-3 against the bill, though some members expressed interest in attempting to revive it later this legislative session, which continues into March.

The tax exemption would be granted by the state Department of Revenue, requiring the data center to have an electric service agreement that avoids shifting costs to other utility customers. The data center would also be required to notify local water providers to ensure consumption is compatible for the location.