DeSantis signs AI data center regulations into law

Florida Governor Ron DeSantis signed Senate Bill 484 into law on Thursday, establishing new regulations for large-scale data centers, particularly those supporting artificial intelligence operations. The bill aims to prevent Florida utility customers from subsidizing the increased electricity costs associated with these energy-intensive facilities, mandating that data centers bear their full cost of service for connections and power transmission/generation. DeSantis signed the bill at Florida Polytechnic University in Lakeland, describing it as a "pretty strong first step" in AI regulation, despite his previous comments that it was "watered down" from his original vision. The new law requires the Florida Public Service Commission to develop specific tariffs and service requirements to ensure cost responsibility. It also strengthens the ability of local governments to deny data center construction within their jurisdictions but introduces a provision allowing cities and counties to enter into 12-month non-disclosure agreements with tech companies regarding data center proposals, thereby shielding them from public view during that period. The legislation was met with concerns from business lobbying groups during committee hearings, who argued that it imposes excessive permitting requirements compared to other industrial users. Key issues debated during the bill's passage included the vast water and electricity demands of large data centers. Senator Bryan Avila, R-Miami Springs, the bill's sponsor, highlighted concerns about dramatic rate increases seen in other states like Virginia due to data center expansion. The DeSantis administration has expressed skepticism about new large data centers, with Secretary of Commerce Alex Kelly questioning a 4.4 million square foot project in Fort Meade, which is projected to use 50,000 gallons of water daily, emphasizing that Florida's water resources are precious and should not be at the mercy of "a quick deal." While SB 484 passed, another component of DeSantis's AI regulatory push, an "AI Bill of Rights" aimed at consumer protection, failed to gain legislative support in the House, with House Speaker Daniel Perez, R-Miami, suggesting such protections should be addressed federally.