Fact-checking Byron Donalds on new Florida data center law
PolitiFact fact-checked Byron Donalds' claim that Florida's new Senate Bill 484 ensures utility rates will not increase due to data centers. Experts explain that while the law directs the Florida Public Service Commission to ensure large data centers bear their own costs, it does not guarantee consumer rates won't rise. The law applies to four investor-owned utilities but excludes municipal and rural cooperative utilities, limiting its reach.
U.S. Rep. Byron Donalds, a Republican candidate for Florida governor, claimed that the newly enacted Florida Senate Bill 484 (SB 484) guarantees utility rates will not increase for consumers due to the presence of new data centers. This claim was fact-checked by PolitiFact in the context of the state's gubernatorial race, where the expansion of artificial intelligence data centers and their impact on electric bills have become a contentious issue.
Energy policy experts, including Mark McNees, a Florida State University professor, stated that while SB 484 provides protections, Donalds overstated its certainty. The law mandates that the Florida Public Service Commission, the state's primary energy regulatory body, approve minimum tariff and service rules for large electricity consumers, specifically data centers requiring 50 megawatts or more. These rules must "reasonably ensure" that data centers cover their full cost of service and that these costs are not shifted to average consumers.
However, experts noted that the law primarily outlines a process rather than guaranteeing an outcome, as rate protection depends on the commission's enforcement. Furthermore, the law applies only to four investor-owned utilities—Florida Power & Light, Duke Energy Florida, Tampa Electric, and Florida Public Utilities Company—which serve about 75% of the state's population. It does not cover rural cooperatives or municipal utilities like Jacksonville Electric Authority, Orlando Utilities Commission, and Gainesville Regional Utilities, leaving customers of these providers potentially unprotected from data center-related rate increases. Donalds' Democratic opponent, David Jolly, has advocated for a data center moratorium, noting that some counties have already implemented such measures.