Lakeland is primed to become a data center hotspot, developer says
A Lakeland developer, Franklin Cruz of True Investments Development, believes the city is a prime location for data centers, citing potential tax revenue and available industrial sites. However, residents have voiced strong opposition to a proposed hyperscale data center in West Lakeland, raising concerns about power and water demands. The main hurdle for the project is zoning, as the city's current Land Development Code does not include a direct category for data centers.
Lakeland, Florida, is being pitched as a potential hub for data center development by Franklin Cruz, CEO of True Investments Development. Cruz highlights the city's logistical advantages due to its proximity to I-4 and existing industrial infrastructure, asserting that data centers are akin to industrial warehouses and should be zoned as such. He estimates a proposed 600,000-square-foot hyperscale data center could generate over $90 million in taxes for the city over 20 years, alongside millions in upfront impact fees.
However, the conceptual proposal for a data center off Old Tampa Highway in West Lakeland faces significant resident opposition, primarily over concerns about its substantial power and water demands and potential environmental impacts. City Senior Planner Audrey McGuire notes that Lakeland's current Land Development Code lacks a specific zoning category for data centers, presuming them to be a prohibited use unless reclassified. This zoning challenge is identified as the primary obstacle for the project.
Regarding utilities, Cruz stated that developers typically fund necessary grid upgrades. Lakeland Electric's assistant general manager, Scott Bishop, indicated the developer would need to be prepared for such costs. Lakeland Electric possesses ample capacity, with average daily demand significantly below its 841 megawatts of generation. On water, Cruz argues data centers aim to minimize usage for cost-efficiency, preferring liquid coolants or recycled water. Lakeland currently produces 12-13 MGD of reclaimed water, with approximately 8 MGD potentially available after fulfilling a contract with TECO, offering a sustainable cooling option and potentially avoiding reliance on the Upper Floridan Aquifer.
With Florida Governor Ron DeSantis's proposed property tax exemptions going to voters, Lakeland officials foresee a potential $14.5 million annual revenue loss, making industrial developments like data centers attractive for boosting the city's tax base. The article also mentions Cologix, an existing data center in Lakeland, which operates in a retrofitted warehouse on industrially zoned land, illustrating a precedent for such facilities in the area.