County weighs data center moratorium as AI infrastructure questions grow

Lake County, Florida officials are weighing a temporary moratorium on data center development in unincorporated areas of the county. The proposed ban, scheduled for a first reading on August 25, would provide the county commission time to develop local rules to manage the significant infrastructure demands of artificial intelligence (AI) data centers.

This move comes as new state legislation mandates utilities ensure large-load customers, specifically facilities with an anticipated monthly peak demand of at least 50 megawatts, pay their full cost of service. The state law also introduces new water-permitting standards for large-scale data centers, encouraging the use of reclaimed water when feasible, while preserving local land-use authority.

Commission Chair Leslie Campione acknowledged the economic benefits of AI data centers but emphasized the need to address potential impacts on power supply, water use, land compatibility, noise, and public infrastructure. Issa Batarseh, a University of Central Florida professor, informed commissioners that AI data centers can require significantly more electricity than traditional facilities, posing major questions about grid capacity. Discussions also covered water sources (fresh, reclaimed, or closed-loop systems), noise, setbacks, landscaping, and building height.

While some commissioners, like Timothy Morris, expressed concern that a moratorium might signal Lake County is not open for business, others viewed it as prudent planning. Staff indicated a moratorium could be easily lifted once rules are established. Kathleen Dial, the county’s director of development services, confirmed that while the county has been approached about data center development, no specific prospects are currently being worked with. Other Florida counties, including Citrus and Nassau, have already implemented similar one-year moratoriums.