COMMENTARY: Is bill regulating data centers a win for Florida?

Florida Senate Bill 484, recently passed by the Florida Legislature and sent to Gov. Ron DeSantis, aims to regulate large-scale data center operations in the state. A key provision requires data centers to cover the costs of their utility infrastructure, rather than burdening general ratepayers. However, the bill's water provisions, mandating the use of reclaimed water for cooling for data centers consuming over 100,000 gallons daily, are criticized for a lack of definition regarding "environmental, economic, and technical feasibility." This ambiguity, critics like Dr. Mark McNees argue, leaves the determination to individual water management district boards without clear standards or methodology, potentially allowing developers to bypass the requirement by claiming it's too costly. A second major concern is the reversal of an earlier provision regarding non-disclosure agreements. While the original bill prohibited state agencies from signing NDAs with data center companies, the final version permits them for up to a year, keeping company plans secret from the public. Even the bill's sponsor, Sen. Bryan Avila, reportedly expressed reservations about this change and acknowledged potential constitutional issues. Critics contend that this lack of transparency undermines the bill's intended ratepayer protections. Dr. Mark McNees, director of Social and Sustainable Enterprises at Florida State University, emphasizes the "existential concerns" posed by data centers' high water consumption on Florida's aquifers. He suggests legislative fixes for the next session, including defining feasibility criteria independently of applicant analysis and requiring public hearings for any exemptions.