TECO proposes sweeping safeguards as Florida prepares for data center growth
Tampa Electric has asked the Florida Public Service Commission to approve safeguards requiring future large-load customers, including data centers, to cover the full cost of the infrastructure needed to serve them. The proposal would impose long-term contracts, financial guarantees and other protections for existing ratepayers, while Hillsborough County officials discuss possible water-use restrictions and a moratorium on AI-focused data centers.
Tampa Electric filed a proposal with the Florida Public Service Commission on Sept. 30 that would create new tariffs for customers with expected peak demand of at least 50 megawatts. The rules would require large energy users such as data centers to pay their full service and infrastructure costs, sign contracts of at least 20 years, provide advance notice before ending service and potentially post financial guarantees of up to $2 million per megawatt.
The filing follows a Florida law requiring utilities to establish tariffs for large-load customers and would prohibit service to certain entities linked to foreign countries of concern. The Florida Public Service Commission must approve the plan, a process that could take several months.
Although no major data center project is currently under review in Hillsborough County, county commissioners are considering future restrictions, including limits on using county drinking water for cooling and a possible moratorium on AI-focused data centers in unincorporated areas while land-use policies are developed.