How Lakeland's data center moratorium could extend beyond city limits

Lakeland, Florida, is actively considering a one-year moratorium on data centers and other large industrial developments. City Attorney Palmer Davis informed the City Commission on July 20 that the proposed ban would apply across the entire Lakeland Electric service area, impacting development even outside city limits where 40% of the utility's customers reside, including areas like Polk City, Medulla, and Highland City.

Lakeland Electric strongly supports the moratorium, with Scott Bishop, assistant general manager for energy delivery, citing concerns about reliability and affordability for existing customers. Bishop stated the ban would provide crucial time to evaluate the Federal Energy Regulatory Commission's upcoming regulatory guidelines for large-load connections and to develop a rate structure that does not negatively impact current customers. He also indicated a willingness to work with future data center developers who can contribute power generation capacity.

However, the proposal has faced scrutiny. Commissioner Ashley Troutman urged a reconsideration of the wording, suggesting it was "short sighted" and advocating for an exception for developments, including data centers, with electrical demands of 25 megawatts or less, similar to the existing Cologix facility. Several residents raised concerns about potential legal loopholes for small server rooms and pushed for a longer moratorium, up to two years, to thoroughly study the impacts of potential hyperscale data centers. City Attorney Davis noted that substantive changes to the moratorium's language would necessitate restarting the public hearing process.