Pinellas County Explores Water Restrictions and Tax Bans To Block Large Data Centers

Pinellas County officials held a work session on May 14 to discuss strategies for deterring large data centers, particularly those supporting artificial intelligence and cloud computing, from establishing facilities within the county. Commissioner Chris Scherer voiced strong opposition, citing the enormous water and electricity consumption of these facilities, which he believes would drive up costs and deplete resources while creating few jobs. Scherer referenced estimates indicating data centers could use up to 150 million gallons of water monthly.

The discussion included Florida Senate Bill 180, a 2025 law that limits local governments' ability to impose stricter land-use regulations in hurricane-affected areas. Scherer believes the law's silence on water usage provides an avenue for the county to implement water restrictions or significant impact fees. County Administrator Barry Burton confirmed that staff are investigating the county's legal authority and how existing utility agreements with municipalities and Tampa Bay Water might affect potential restrictions.

Commissioner Kathleen Peters supported blocking tax incentives and abatements for large projects. While acknowledging that some newer facilities use closed-loop cooling systems or alternative water sources, Peters warned that broad water restrictions could negatively impact essential services like hospitals and power generation. She also expressed concerns about noise pollution and environmental impact in the county's densely populated areas. County staff are expected to continue their research and present recommendations later this year.