Data Center Compromise

In Florida, state lawmakers passed SB 484, a bill aimed at regulating data center development. Governor Ron DeSantis had called for this legislation in December, citing the need to protect Floridians from bearing the costs of hyperscale AI data centers on their electric bills and to empower local governments in site selection. The bill, which passed both the House and Senate overwhelmingly, directs the Public Service Commission to prevent cost-shifting to general ratepayers and affirms local governments' authority to regulate data center locations. Kevin Doyle, vice president for southeast state operations for the Consumer Energy Alliance, described the legislation as a "balanced approach," suggesting it would not deter new data center applications. However, a provision preventing local officials from entering into non-disclosure agreements for preliminary project information was removed. Doyle also acknowledged that increasing public resistance to data centers, fueled by concerns over electricity, water use, and health, remains a challenge, though he believes these worries will dissipate as projects are successfully completed and generate jobs and tax revenue.