Florida Enacts Law to Regulate Data Center Energy, Water, and Local Zoning

Florida Governor Ron DeSantis signed Senate Bill 484 into law in Lakeland, a significant legislative measure aimed at regulating hyperscale data center development across the state. The new law seeks to protect Florida residents and natural resources from the extensive energy and water demands of these facilities. A primary provision of SB 484 prohibits utility companies from passing the infrastructure and electricity costs associated with data centers onto general ratepayers. Instead, large-scale industrial users will be solely responsible for their service expenses. The legislation also addresses environmental concerns, particularly the millions of gallons of water required for cooling systems, by implementing a more rigorous permitting process and encouraging the use of reclaimed water to conserve the state's freshwater supply. The law further empowers local municipalities by reaffirming their authority over zoning, land use, and permitting decisions for data center projects. This provision ensures that city and county governments can establish stricter development standards or reject projects that do not align with local needs. Additionally, the bill includes provisions for national security and corporate transparency, mandating public disclosure of development deals after an initial exemption and barring services to data centers owned or controlled by "foreign countries of concern."