DeSantis signs bill regulating costs, water use tied to large-scale data centers in Florida

LAKELAND, Fla. - Florida Gov. Ron DeSantis signed a new bill Thursday aimed at controlling large-scale data centers and preventing consumers from footing the bill for the massive facilities’ utility demands.

The backstory:

The governor signed Senate Bill 484 during an event at Florida Polytechnic University in Lakeland, calling the legislation the first of its kind in the nation.

According to DeSantis, the measure is designed to ensure that the costs associated with hyperscale data centers are not passed on to everyday Floridians through utility bills.

The legislation also preserves local governments’ authority over approving and regulating large-scale developments, including data centers.

State officials said the bill requires discussions involving water use and utility impacts from data centers to happen during public meetings, adding more transparency for communities.

The centers will have to apply to be considered for a consumptive use permit in order to tap into the state's water resources.

"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.

Water and utility impact concerns

State leaders voiced concerns about the amount of water and electricity needed to operate massive data centers, particularly as artificial intelligence infrastructure continues to expand nationwide.

Florida Secretary of Commerce Alex Kelly said the bill strikes a balance between economic growth and public accountability.

Kelly added that the legislation ensures utility costs tied to the facilities remain the responsibility of the data centers themselves rather than taxpayers or utility customers.

DeSantis did not say whether large-scale data centers should be implemented locally, but suggested local governments should consider charging the large companies higher rates for infrastructure usage when building the data centers.

"You should be charging them a lot more," DeSantis said.

AI growth and Florida infrastructure

The event comes as states across the country compete to attract artificial intelligence and large-scale data centers, which often require massive amounts of power and water to cool servers.

Florida officials say the new law is intended to provide safeguards before more hyperscale facilities are developed across the state.

DeSantis also discusses immigration operations

During the press conference, DeSantis also addressed Florida’s partnership with the U.S. Department of Homeland Security on immigration enforcement efforts.

The governor said Florida currently leads the nation in agreements with DHS.

DeSantis also discussed the state-run immigration detention facility nicknamed "Alligator Alcatraz," saying the operation has helped house thousands of migrants temporarily while federal officials process deportations.

"The facility keeps Florida safer," DeSantis said.

What's next:

DeSantis added that DHS has not indicated plans to shut down the facility and is continuing to evaluate its operational footprint. He said the state will continue to partner and support them.

Now that DeSantis signed SB 484, the bill becomes a law and will likely take effect on July 1.