PIERRE, S.D. – A Rapid City electricity provider is seeking permanent confidentiality for an agreement to power a new blockchain data center within the city.

Black Hills Energy, operating as Black Hills Power, filed a request with the South Dakota Public Utilities Commission to keep the entirety of its contract with CSRE Properties South Dakota, LLC hidden from public view. The company, located at 490 Deadwood Ave. in Rapid City, is tied to the bitcoin mining industry.

Business records indicate CSRE Properties registered in South Dakota in December 2024. The organizer, Leighton R. Koehler, serves as general counsel for CleanSpark, a Nevada-based bitcoin mining firm that develops large-scale data centers.

The request follows the January 2026 approval of a special tariff allowing Black Hills Energy to offer specific rates to large power users. While the South Dakota Legislature recently passed Senate Bill 135 to establish guidelines for data centers, separate legislation intended to ban nondisclosure agreements for such facilities was defeated following opposition from industry lobbyists.

Public filings for the project indicate that CSRE Properties would be responsible for equipment on its side of the meter, while Black Hills Power would maintain the infrastructure on the utility side. CSRE Properties has agreed to reimburse the utility for construction and capital costs, including associated federal income taxes.

The proposed agreement includes an interruptible service clause, allowing Black Hills Power to cut electricity to the data center for up to 300 hours per year to manage grid demand.

“The document qualifies for confidential treatment because it contains proprietary business information Black Hills Power does not disclose to the public,” Jason Keil, regulatory manager for Black Hills Power, wrote in the application.

Commission staff began issuing data requests regarding the filing on March 25. The South Dakota Public Utilities Commission has not yet set a date to rule on the confidentiality request or the underlying power agreement.