Palm Beach County could be next local government to temporarily ban data centers
Palm Beach County officials are considering implementing a yearlong moratorium on large-scale data center developments, prompted by concerns after rejecting the "Project Tango" proposal. The moratorium aims to provide time to update the county's land-development codes, particularly for hyperscale AI data centers. Meanwhile, PBA Holdings, the owner of the Project Tango site, is appealing the county's denial.
Palm Beach County officials are set to vote on a proposed yearlong moratorium on large-scale data center developments, following their recent rejection of the controversial "Project Tango" proposal west of Loxahatchee. The moratorium, which commissioners will review in a first reading and vote on by September 24, aims to allow the county ample time to update its land-development codes. Senior Attorney Christina Reichert of Earthjustice highlighted that modern hyperscale AI data centers significantly differ from traditional ones, posing unique impacts on land, energy, water, air, and acoustics that current regulations may not address.
Assistant County Attorney Darren Leiser confirmed that the county's existing code lacks specific rules for hyperscale AI data centers. The planned code revisions could introduce new requirements, such as increased landscape buffers, sound studies, and development agreements. The county zoning commission has already approved a definition for large-scale data centers and the moratorium language, which, if enacted, would halt the processing of new applications for a year.
At the state level, Florida Governor Ron DeSantis signed a bill in May creating a regulatory framework for large-scale data centers. This law mandates that data centers contribute to the electricity grid costs to prevent burdening residents with higher utility bills and requires them to use gray or reused water for cooling instead of potable water. However, Attorney Leiser noted that this state law provides guidance but leaves specific regulatory decisions to local governments.
Separately, PBA Holdings, the owner of the denied "Project Tango" site, is appealing the county's July decision. Represented by attorney Ethan Loeb, PBA Holdings argues the denial was based on public opposition and unofficial county criteria, rather than existing regulations. They are invoking the Florida Land Use and Environmental Dispute Resolution Act and have requested a special magistrate hearing, with the ultimate goal of getting "Project Tango" approved. The county has stated it cannot comment on the ongoing litigation.