Home » Governor signs legislation more tightly regulating data centers

Governor signs legislation more tightly regulating data centers

The Governor said the new law gives local governments control over land use rules to protect from data centers.

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Gov. Ron DeSantis has signed legislation to add new regulations to data centers amid concerns the large-scale facilities are sucking up Florida’s resources at taxpayers’ expense.

“This bill, I think, is the first in the country that ensures that the rhetoric we hear is actually reality on the ground,” DeSantis said as he signed SB 484 during a news conference in Lakeland.

Under the measure, local governments are given the power to do comprehensive planning and pass land development regulations over data centers. Data centers are required to cover their own utility services costs and infrastructure expenses instead of passing them on to Floridian consumers.

“That’s just not right for the most wealthy companies in the history of the world to come in and have individual Floridians or Americans subsidize these hyperscale data centers,” DeSantis said at the bill-signing ceremony. “Individuals should not have to pay anything more if their community brings in a data center.”

It’s unclear how much the new law, which takes effect July 1, could cost data center operators.

“The bill will most likely have an impact on the electricity rates, fees, and other costs paid by large load electric customers of public electric utilities. However, the degree of this impact is indeterminate given the multitude of factors present in determining an electric utility rate, particular customer circumstances, and that the impact is likely to be partly determined upon the particular rule provisions adopted by the Public Service Commission,” Senate staff analysis from February said.

“In addition, large-scale data centers seeking consumptive use permits may see an increase in costs relating to the application process and additional permitting requirements authorized by the bill.”

One provision in the legislation establishing a regulatory framework also said big data centers may be required to use some reclaimed water instead of surface or ground water “if reclaimed water is environmentally, economically, and technically feasible.”

Some lawmakers wished the measure went further to ban economic development agencies from keeping plans to build major data centers secret from the public for up to a year.

“I still would like to be able to protect our constituents and let them know when these large data centers are coming into their communities so that they can have the discussion,” Senate Democratic Leader Lori Berman said during the debate in March when a provision to prevent nondisclosure agreements was taken out of the final version.

Meanwhile, others feared the legislation was too extreme and would clamp down on new data centers being built in Florida.

At Thursday’s news conference, Florida Commerce Secretary J. Alex Kelly said data centers promise job creation, but in reality often end up requiring big infrastructure investments and other demands.

“They come to towns, cities, counties with a big shiny economic development object,” Kelly said. “But what we’ve seen … is that there’s a lot of catches.”

DeSantis has been louder speaking against data centers and artificial intelligence which some have questioned is a move to differentiate himself from Republican presidential contenders.

DeSantis pushed for lawmakers to approve an AI bill of rights aimed at protecting children and consumers. But the House killed that legislation and refused to take the issue up during a brief Special Session last month, arguing the federal government should take the lead on policy.

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Jacob Ogles of Florida Politics contributed to this report.

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