Orange County, Florida, Considers Data Center Moratorium Amid Cost Concerns

Orange County leaders are considering a countywide moratorium on data center development, driven by concerns over transparency and the potential financial burden on utility customers. This action follows a filing with state regulators that suggests future data centers could create a multi-billion dollar revenue gap for Duke Energy, which might be passed on to customers.

Attorney Jordan Lupman, representing an unnamed organization, informed state regulators that Duke Energy's current proposal for handling data center costs disregards a new data center cost protection law (SB 44). Lupman argued that Duke's plan to place data centers on existing rates, rather than charging them a specific rate, could "irrefutably strand the general body of customers with an undisclosed billions of dollars of extra cost." Orange County Commissioner Kelly Martinez Samrad expressed concern that the public should be fully aware of these potential costs, leading the county to initiate efforts towards a moratorium to "pause, to study, and to protect."

In response, Duke Energy issued a statement asserting that its plan, which was the first to be presented to state regulators, is in full compliance with the new data center law. The utility provider also highlighted its recent request for a customer rate cut, set to take effect in 2027. Duke Energy did not directly address questions regarding the disputed cost projections or the necessity of redactions in their filing.