Gov. DeSantis signs legislation more tightly regulating data centers

Florida Governor Ron DeSantis has signed new legislation, SB 484, aimed at more tightly regulating data centers across the state. The Governor stated that this law is the first of its kind in the country, granting local governments significant power over comprehensive planning and land development regulations specifically for data centers. The bill mandates that data centers are responsible for covering their own utility services and infrastructure expenses, rather than passing these costs to Floridian taxpayers, a point emphasized by DeSantis at a news conference in Lakeland. Taking effect on July 1, the new law's financial impact on data center operators is still unclear, though Senate staff analysis suggested potential increases in electricity rates and permitting costs for large load customers and those seeking consumptive use permits. Furthermore, the legislation includes a provision that may require large-scale data centers to use reclaimed water if it is environmentally, economically, and technically feasible. While some lawmakers wished the bill had gone further, for example, by banning non-disclosure agreements that keep data center plans secret, others expressed concern that the regulations might be too restrictive for new data center development in the state. Florida Commerce Secretary J. Alex Kelly also commented on the often-understated infrastructure demands and catches associated with bringing data centers into communities.