Florida Data Center Contracts Could Leave Utility Customers Paying for Abandoned Power Infrastructure
The commentary examines the financial risks Florida utility customers could face if data centers leave after utilities build power plants and transmission infrastructure for them. It reviews exit-fee proposals from Tampa Electric, Florida Power & Light and Duke Energy Florida, and notes that Orlando Utilities Commission customers are not covered by the new state law.
Florida’s push to attract large artificial-intelligence data centers is prompting utilities to plan major power-generation and transmission investments. Mark McNees, a Florida State University professor, argues that customers could be left paying for those assets if a data center closes, relocates or finds cheaper electricity before the infrastructure is fully paid off.
A new Florida law requires large customers to cover their own costs and prevents utilities from shifting payment risks to other customers, but it does not mandate full exit fees. Tampa Electric proposed a substantial fee during a customer’s 20-year contract, while Florida Power & Light’s fee would cover only part of the costs and Duke Energy Florida’s proposal remains under review by the Florida Public Service Commission. The law does not apply to city-owned Orlando Utilities Commission, leaving protections for its customers to the utility’s contracts and governing board.