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Could Local or State Moratoriums on Florida AI Data Centers Cause A Recession?

No organization or individual has disclosed the exact number of permits being applied for for proposed AI data centers in Florida.

Some reports have said there are currently 120 operating in the state. The Miami Herald reported that in the Miami area, 27 data centers were already under construction or built.

Jacksonville City Councilman Rory Diamond said there were quite a few permits being applied for in Duval County, but didn’t provide an exact tally.

Many cities and counties have either voted to halt the expansion of data centers or are currently considering moratoriums on “large-scale” data centers, such as Broward County.

Other counties are considering AI moratoriums. For example, Orange County officials are planning temporary moratoriums on data center construction for at least 6-18 months. Elected leaders said they needed time to analyze the benefits vs. the risks.

Much of the job creation and economic growth in the U.S. has come from the expansion of AI and the data centers. Financial and investment firms have invested over $1.4 trillion and are looking to earn a return on their funding.

However, according to one group, if these moratoriums stay in place, it could lead to an economic slowdown.

Larry Fink, CEO of the world’s largest asset manager, BlackRock, says the slowdown in building the data centers will hurt the economy.

“If we have a moratorium of some sort in this country, we will be in a recession,” said Fink.

Data center growth in Florida has become an issue in the governor’s race. Republican Byron Donalds has supported new development of the centers, while Democrat David Jolly supports the moratorium.

Supporters of the data center expansion are claiming it will create more jobs and revenue for smaller rural areas in the state. Opponents argue it will raise utility costs for local communities and raise concerns over water conservation.

Polls show most Americans don’t want data centers in their backyard, but a moratorium could hurt certain investment companies’ bottom lines.

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