Big data centers in Florida must pay full power and infrastructure costs under new law

Florida Governor Ron DeSantis signed Senate Bill 484 into law on Thursday, mandating that large-scale data centers pay the full cost of their electricity and infrastructure upgrades. The measure prevents utilities from passing these expenses onto residential and small-business customers, addressing concerns that tech companies were subsidized by local ratepayers. DeSantis emphasized fairness, stating that Floridians should not bear additional costs due to hyper-scale data centers. The new law directs the Florida Public Service Commission to establish tariffs ensuring large energy users cover their own expenses. It also preserves local government authority to approve or reject data center projects, balancing state oversight with municipal control. Additionally, the legislation allows water management districts to deny permits if data centers threaten water supplies, encouraging the use of reclaimed water amid drought conditions. The law permits local governments to enter non-disclosure agreements with companies for up to a year, limiting public access to project details during negotiations. DeSantis framed the bill as a step toward stronger regulation of data centers and artificial intelligence, an area he has prioritized despite stalled legislative proposals. The measure aims to address both economic and environmental concerns while maintaining transparency where possible.