Lake County moves to pause new data centers near Orlando

Lake County commissioners unanimously voted to direct staff to draft an ordinance for a one-year moratorium on new data center projects in unincorporated areas of the county. The decision, made last Tuesday, responds to growing concerns from residents about the significant water and electricity consumption of these facilities and their suitability for the county's predominantly rural character. Commissioner Anthony Sabatini was a key proponent of the pause, emphasizing the need to prevent utility strain and potential rate increases for residents, while allowing county staff time to study infrastructure impacts and refine permitting processes. A follow-up hearing and formal vote on the proposed moratorium are anticipated in early July.

This local initiative by Lake County coincides with the implementation of Florida's Senate Bill 484, signed into law in May and effective July 1. This state legislation mandates that large power users, including data centers, contribute their equitable share of grid costs and comply with more stringent disclosure and water-permit regulations. The law aims to protect ratepayers and maintain some local regulatory authority, influencing how counties approach development standards.

Data center operators like HostDime, which is currently constructing a facility near Orlando, maintain that modern data centers are more efficient. HostDime CEO Manny Vivar highlighted the use of closed-loop water recycling systems in their new project. Lake County is not unique in its cautious approach; Pasco County has also considered a moratorium, and Nassau County has already enacted a temporary pause to assess potential impacts. Legal experts, including those from WilmerHale, caution that this complex regulatory environment, combining local moratoriums and new state laws, could lead to legal challenges if counties' restrictions are perceived as overreaching.