As data center projects emerge as one of the most fiercely debated issues across the country, Florida Governor Ron DeSantis signed SB 484 on a new Florida law aimed at limiting the impact of large-scale “hyperscale” data centers tied to artificial intelligence growth. The measure focuses on protecting electric ratepayers, preserving local control over development decisions, and addressing concerns about water and energy consumption.
During the bill signing event at Florida Polytechnic University, DeSantis said Floridians should not pay higher electric bills because of expanding AI infrastructure. He also raised concerns about the long-term environmental and societal impacts of artificial intelligence growth. Supporters of the legislation pointed to states such as Virginia, where large data center expansion has increased strain on electric grids and water supplies. Florida lawmakers cited projections that U.S. data center demand could triple by 2030 as AI usage accelerates.
Key Impacts of SB 484
Major project modifications must undergo new application reviews.
Protects Consumers From Higher Utility Costs
Utilities cannot pass data center-related electricity and infrastructure costs onto residential or small business customers.
Large data center operators must pay their full cost of service.
The law seeks to prevent taxpayers and ratepayers from subsidizing AI-related infrastructure expansion.
Strengthens Local Government Authority
Cities and counties retain authority over zoning, permitting, and land-use decisions involving data centers.
Local governments can impose stricter standards or reject proposed projects altogether.
The bill reinforces local oversight instead of creating automatic statewide approvals.
Adds Restrictions and Transparency Requirements
Utilities are prohibited from serving data centers owned or controlled by foreign countries deemed security concerns.
Data center agreements must eventually become public after temporary confidentiality periods expire.
The legislation establishes clearer legal definitions intended to prevent loopholes.
Creates New Environmental and Infrastructure Standards
Large-scale data centers will face a dedicated permitting process.
Projects may use reclaimed water as part of permitting requirements.
Business groups opposed parts of the bill during the legislative process, arguing the regulations could discourage economic development and place extra burdens on data center projects compared to other industrial facilities.
The law follows scrutiny from the DeSantis administration over proposed large-scale projects, including a planned 4.4 million-square-foot data center in Fort Meade that reportedly could consume up to 50,000 gallons of water per day.
