Donalds says FL law will prevent electric bill hikes from data centers. That’s not guaranteed.
Florida politicians and experts are debating whether a new state law, SB 484, guarantees that consumer electricity bills will not rise due to the construction of new data centers. While U.S. Rep. Byron Donalds asserts the law prevents hikes, energy policy experts caution that its protections are not absolute and do not cover all utility companies. The law directs the Florida Public Service Commission to ensure large data centers bear their full cost of service.
A significant political debate is unfolding in Florida regarding the potential impact of new artificial intelligence data centers on consumer electricity bills. GOP frontrunner U.S. Rep. Byron Donalds supports these developments, provided consumer protections are in place, and asserts that the 2026 state law, SB 484, ensures utility rates will not increase due to data centers. Donalds has also introduced a similar bill in Congress.
Conversely, David Jolly, the leading Democrat in the governor's race, advocates for a data center moratorium, noting that some counties in Florida have already implemented such pauses. Jolly criticizes Donalds for allegedly dismissing the consequences of rapidly developing these facilities on pristine land.
Energy policy experts, including Florida State University professor Mark McNees, largely agree that Donalds' claims about the law's guarantees are overstated. While SB 484 directs the Florida Public Service Commission to approve minimum tariff and service rules for large electricity consumers, such as data centers requiring 50 megawatts or more, it only requires that these plans "reasonably ensure" data centers bear their full cost of service. Experts describe the law as procedural, not a definitive cap on rates or a ban on increases. Furthermore, the law's protections only apply to the four investor-owned electric utilities regulated by the commission—Florida Power & Light, Duke Energy Florida, Tampa Electric, and the Florida Public Utilities Company—which serve about 75% of the state's population. It does not cover rural cooperatives or municipal utilities like Jacksonville Electric Authority, Orlando Utilities Commission, and Gainesville Regional Utilities, potentially leaving their customers vulnerable to different rate structures.