Governor DeSantis doesn't want 'consumers footing the bill for the cost of power-intensive data centers'

TALLAHASSEE, Fla. - House Bill 1007 was filed last week, aimed at imposing rules and regulations on "hyperscale data centers."

Under the bill, local governments must hold a public hearing to approve the project prior to the construction and operation of any hyperscale data center. Additionally, utility companies – in fixing rates for hyperscale data centers, would not be allowed to collect certain impact fees.

It also prohibits the construction and operation of hyperscale data centers on specified lands. 

Dig deeper:

Think of data centers as facilities where many servers are stored. 

"So a server is just, you can think of it as just a computer that has to process a lot of the data that gets communicated through apps or social media feeds or most of the things that we use on a daily basis," Dr. John Licato, an associate professor in USF’s Bellini College of Artificial Intelligence, Cybersecurity and Computing, told FOX 13. 

"And it stores a lot of the data that those servers use to communicate with each other, a lot of the data about the users, (and it) does a lot of the heavy computing that is required by things like AI and cybersecurity and cryptocurrency."

READ: Florida Gov. Ron DeSantis last State of the State: Full speech video

Last year, Polk County commissioners approved a huge tax break for a massive data center coming to Fort Meade.

"There are small data centers. For example, here at USF, we have our own little cluster of machines that we use for mostly AI computation," Licato said. 

"But there are larger data centers, and they're typically in areas where you can have a lot of power draw."

Data centers do use a lot of electricity thanks to all that equipment. 

"You have these specialized data centers where they have all these servers in parallel that are drawing a lot of power, converting a lot of that into heat. And you need a really efficient way of cooling all of them down," Licato added. 

What they're saying:

On Tuesday, during his final State of the State address, Governor Ron DeSantis addressed what he described as "power-intensive data centers."

"Artificial intelligence is touted as being the key to curing cancer and expanding America's military edge over our rivals, and perhaps this will be true," DeSantis said. 

"But this technology also threatens to upend key parts of our economy in ways that can leave many Americans out of work, and with consumers footing the bill for the cost of power-intensive data centers."

READ: Governor DeSantis touts recent proposal to limit AI access

Speaking at a Monday news conference in Davie, the governor described data centers as using the power equivalent to a "half a million-person city," emphasizing the need to protect the consumer.  

"Especially in Florida, I'd hate to see us have a big hurricane, try to get the power for everyone back on, and we've done, really, a much better job in Florida over the years doing that than they used to, but imagine, you want to have your power turned on in Fort Lauderdale, and the data center comes first. I think a lot of people would not like that," DeSantis said. 

"So, I think making sure that we're channeling that in ways that are productive, that are going to reinforce and not supplant our values and our role, I think is important."

The other side:

The Data Center Coalition – an industry organization whose members include AWS, Google, Meta, Microsoft, and Visa, described data centers as committed to being "responsible neighbors." 

In a written statement to FOX 13, Data Center Coalition VP of State Policy Dan Diorio said: 

"Across the country, states are recognizing the critical role data centers play in the 21st-century economy and the many benefits they provide to local communities. Data center companies are making multi-billion-dollar investments that strengthen America’s infrastructure and national security, while also creating high-wage jobs and generating billions in tax revenue that supports schools, transportation, public safety, and other local priorities. 

 Data centers are committed to being responsible neighbors in the communities where they operate. The industry employs sustainable water practices in its operations and remains committed to paying its full cost of service for the energy it uses. Reports from states like Virginia and Arizona confirm we’re delivering on that commitment, and a new report from Lawrence Berkeley National Laboratory shows that adding data centers and other large load customers to the grid can even help lower energy costs for other customers.

 Unfortunately, this legislation would send the wrong signal that Florida is closed for business, potentially missing out on economic development opportunities that are supporting millions of quality jobs and billions of dollars in tax revenue in states across the nation. We look forward to continuing to work with state and local leaders to ensure the continued responsible development of this critical 21st-century industry."