Palm Coast Council Counters Fears Over Town Center Data Center: It Is Not a Water and Power-Guzzling AI Facility

Palm Coast Council Counters Fears Over Town Center Data Center: It Is Not a Water and Power-Guzzling AI Facility

News ClipFlaglerLive·Palm Coast, Flagler County, FL·5/20/2026

Palm Coast City Council is addressing resident concerns about a new 35,000-square-foot DC Blox data center in Town Center, clarifying it's an internet cable landing station, not a large AI facility. Despite its smaller size, it will become the city's largest electricity consumer, raising local fears about resource usage. The project advanced through administrative approvals without public oversight, leading to some resident discontent.

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Gov: Palm Coast City Council, Flagler Beach, Palm Coast Planning Board, Flagler County, St. Johns River Water Management District, Nuclear Regulatory Commission

Palm Coast City Council members are actively working to assuage resident anxieties regarding a 35,000-square-foot data center under construction in the city's Town Center. Council member Ty Miller emphasized that the facility, developed by Atlanta-based DC Blox, is an internet cable landing station (CLS) and not a "hyperscale" artificial intelligence (AI) center, which typically consume vast amounts of water and electricity. Miller clarified that the Town Center facility acts as a "switching center" rather than performing the raw computing of AI centers.

The project, located near Imagine School and Sabal Preserve, proceeded through administrative approvals without requiring public review by either the Palm Coast Planning Board or the City Council due to its scaled-down size. Despite reassurances, the DC Blox facility, designed to support up to 10 megawatts of power, is projected to be the largest single private consumer of electricity in Palm Coast. The company has also issued a "fact sheet" describing its water usage as a "closed loop" system, comparable to a small commercial building.

Resident concerns about water and electricity consumption were voiced by George Mayo and Dennis McDonald at a council meeting. Mayo highlighted issues like noise and minimal job creation often associated with data centers, referencing national media reports. McDonald, while not directly linking data centers to Lake Jackson's periodic drainage in Tallahassee, accurately pointed to Florida's broader diminishing aquifer reserves, a concern echoed by a recent drought alert from the St. Johns River Water Management District. Council members acknowledged these concerns, with Theresa Pontieri stating the city administration is now more aware when reviewing future data center plans. A Florida law may help prevent electricity rate socialization, alleviating some cost concerns for general consumers.