Florida Governor Signs Bill Regulating Data Center Costs and Water Use

Florida Governor Ron DeSantis signed Senate Bill 484 into law on Thursday, a landmark piece of legislation aimed at controlling large-scale data centers across the state. The bill, signed at Florida Polytechnic University in Lakeland, is designed to protect consumers from incurring the utility costs associated with hyperscale data centers, mandating that these facilities cover their own utility demands. Furthermore, it requires public utilities to establish specific tariffs and service requirements for data center customers. The legislation strengthens transparency by requiring public discussions on water use and utility impacts during the approval process for data centers. It also clarifies and preserves the authority of local governments to approve and regulate large-scale developments, including data centers, addressing previous concerns that a prior bill (SB 180) had unintentionally limited local control. The signing comes amidst growing interest in Florida for data center development, particularly for AI infrastructure, which requires significant amounts of power and water. Florida Secretary of Commerce Alex Kelly and Lt. Gov. Jay Collins emphasized the bill's importance in balancing economic growth with public accountability and environmental protection. Collins, who campaigned for additional regulations, highlighted concerns over water consumption, noise limits, and habitat protection, suggesting that such facilities should not receive tax incentives if they do not create substantial permanent jobs. In response to these concerns, Pinellas County commissioners, including Kathleen Peters, are actively exploring measures to block or limit data center development locally, citing drought conditions and the high water and electricity demands of these facilities. They are considering preventing data centers from receiving tax benefits. The new law is expected to take effect on July 1, with state officials hopeful it will provide necessary safeguards before more hyperscale facilities are developed.