Duke Energy faces first major test of Florida's new AI data center law
Florida regulators are scrutinizing Duke Energy's proposal for powering AI data centers, marking the first major test of a new state law. The law aims to ensure large electricity users cover their infrastructure costs, preventing them from being shifted to other utility customers. The Florida Public Service Commission expressed concerns about Duke's plan, though they allowed it to proceed for further review.
The Florida Public Service Commission is reviewing a proposal from Duke Energy regarding how it plans to cover the electricity costs for new AI data centers, which marks the first significant test of Florida's new data center law. This law, passed earlier this year, mandates that large electricity consumers, such as data centers, bear the costs of the necessary infrastructure and generation they require, rather than those expenses being passed on to general utility customers.
During a recent hearing, Commissioner Gary Clark voiced strong concerns to Duke Energy, stating, "I think you're on real shaky ground." Earthjustice attorney Jordan Luebkemann, representing Florida Rising, emphasized that the commission has an opportunity to correctly implement the law's intent: data centers should pay their own way. Duke Energy, however, asserts that its proposal already complies with the new law, claiming it protects existing customers and prepares for future growth. The company also stated that any shortfalls in revenue to cover large-load customer costs before 2028 would be absorbed by shareholders, not existing customers, due to a current rate settlement.
Despite the concerns, state regulators voted to allow Duke's proposal to advance and rejected a request for dismissal. The commission is scheduled to revisit the proposal during a two-day hearing in late August to make a final decision on its compliance with Florida's new data center law.