DeSantis Signs Bill to Block Data Center Surcharges on Energy Bills

Florida Governor Ron DeSantis signed Senate Bill 484 into law, establishing new regulations for hyperscale data centers in the state. The legislation aims to prevent residential and small business customers from incurring higher electric bills due to data center energy and infrastructure costs, mandating that large operators pay their full service expenses. DeSantis emphasized that Floridians should not subsidize AI infrastructure expansion and raised concerns about environmental and societal impacts. The new law also reinforces local control, allowing cities and counties to retain authority over data center zoning, permitting, and land-use decisions, including the ability to impose stricter standards or reject projects. It prohibits utilities from serving data centers owned by foreign countries deemed security risks and requires public disclosure of data center agreements after temporary confidentiality periods. Furthermore, SB 484 introduces dedicated permitting processes and new environmental and infrastructure standards for large-scale data centers, potentially requiring the use of reclaimed water. Business groups had opposed certain provisions during the legislative process, arguing the regulations could hinder economic development. This law follows scrutiny from the DeSantis administration regarding proposed large projects, such as a 4.4 million-square-foot data center in Fort Meade that raised water consumption concerns.