TECO Plan Would Require Data Centers to Fund Power Upgrades

News Clip2:13Tampa Bay 28·Tampa, Hillsborough County, FL·10/2/2026

Tampa Electric has proposed requiring future large-load customers, including data centers, to pay for new power infrastructure and a share of existing grid costs. The plan requires approval from the Florida Public Service Commission, while Hillsborough County officials are studying land-use rules, potential restrictions on cooling-water use and a moratorium on AI data centers in unincorporated areas.

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Gov: Florida Public Service Commission, Hillsborough County Board of County Commissioners

Tampa Electric has filed a plan responding to Florida requirements for utilities serving large-load customers such as data centers. Under the proposal, new customers would pay for generation, transmission, power lines and storage needed to serve them, as well as a portion of existing grid costs, which the utility says would protect other customers from higher bills. The Florida Public Service Commission is expected to consider the plan in the coming months, potentially by early next year.

The proposal comes amid growing concern about data center development in Hillsborough County. County commissioners have said they will study the potential impacts before considering projects and are developing a framework for future land-use regulations. Officials are also examining whether to prohibit data centers from using county drinking water for cooling, and the county attorney was asked to draft an ordinance imposing a moratorium on AI data centers in unincorporated Hillsborough County.