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Florida Pulls The Plug On Data Center Subsidies With New Law

Florida Governor Ron DeSantis traveled to Lakeland on Thursday to sign SB 484, a new piece of legislation aimed at shielding Florida residents and the state’s natural resources from the rapid expansion of hyperscale data centers.

The law is designed to ensure that the massive energy and water demands of these facilities do not result in higher monthly bills for the average homeowner or small business owner.

Under the new regulations, utility companies are strictly prohibited from shifting the infrastructure and electricity costs associated with data centers onto their general ratepayer base. Instead, these large-scale industrial users must foot the entire bill for their own service requirements.

“Today in Lakeland, I signed legislation to protect our citizens and communities from hyperscale data centers,” Governor DeSantis said during the signing. “These are much-needed protections for taxpayers and our natural resources.”

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Florida Gov. Ron DeSantis
Florida Gov. Ron DeSantis

The environmental impact of these facilities, which often require millions of gallons of water for cooling systems, is also a primary focus of the bill. SB 484 creates a more rigorous permitting process for any large-scale data center project. To preserve the state’s freshwater supply, the law encourages and allows for the use of reclaimed water in these industrial cooling processes.

Furthermore, any significant changes or expansions to an existing facility must be treated as a brand-new application, preventing companies from bypassing environmental standards through incremental growth.

A significant portion of the bill returns power to local municipalities. It reaffirms the right of city and county governments to maintain control over zoning, land use, and permitting. This ensures that local communities have the legal standing to set stricter standards for these developments or to reject them entirely if they do not align with local needs.

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The legislation also addresses national security and corporate transparency. It mandates that the details of data center development deals be disclosed to the public once the initial exemption period ends. Additionally, it bars Florida utilities from providing services to data centers that are owned or controlled by “foreign countries of concern.”

By clarifying legal definitions and closing previous loopholes, the state aims to ensure that these facilities are properly classified and regulated as industrial entities. As DeSantis noted, the bill “ensures that local governments maintain the authority to reject data center development in their communities” and “protects Florida’s water resources from data center consumption.”

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