By Staff Report
As companies look to build massive data centers across the country amid rapid growth in artificial intelligence and other technologies, the Florida Senate on Tuesday began moving forward with a regulatory framework aimed at addressing key issues such as electricity and water use.
The Senate Regulated Industries Committee unanimously approved a bill, SB 484, that sponsor Sen. Bryan Avila, R-Miami Springs, said would “lay a foundation and put some parameters in place” for large data centers.
The proposal would require data centers to pay the full costs of electric service — shielding residents and other businesses from bearing part of the expense — and would establish water-permitting requirements. Data centers require large amounts of water for cooling systems.
Sen. Jason Brodeur, R-Sanford, said data centers are likely to be one of the most significant issues lawmakers address this year. He also pointed to other states, such as Georgia, where large data centers already have been built.
“If we don’t do this, others are going to get ahead of us,” Brodeur said.
The bill would require the Florida Public Service Commission, which regulates electric utilities, to develop tariffs and service requirements to “reasonably ensure that each large load customer bears its own full cost of service and that such cost is not shifted to the general body of ratepayers.”
That would include costs related to connecting to electric systems and increased transmission and power generation needs.
The commission has already grappled with the issue in a Florida Power & Light rate case last year and in a pending proposal involving Duke Energy Florida. A settlement in the FPL case includes two sets of tariffs designed for large energy users such as data centers. One tariff focuses on the Treasure Coast region of Southeast Florida, where FPL has significant transmission infrastructure.
Tiffany Cohen, FPL’s vice president of rate and regulatory strategy, told a House panel last month that the utility is trying to be proactive.
“We’ve tried to flip this and say we know we have to build new generation to serve these large customers, and they should be the ones to pay for it,” Cohen said.
The Senate bill also includes several provisions related to water use. It would prevent water management districts from issuing permits for large data centers if the proposed water use would harm local water resources or violate local zoning regulations or comprehensive plans.
Water management districts would be required to issue permits if large data centers meet specified conditions, including demonstrating they will “not interfere with any presently existing legal use of water.”
The proposal also affirms that local governments would retain authority through comprehensive planning and land-development regulations in addressing large data center projects.
In addition, the bill would prohibit state and local officials from entering into non-disclosure agreements that would prevent public disclosure of information about potential data center developments.
However, the Regulated Industries Committee also approved a separate bill Tuesday, SB 1118, filed by Avila, that would create a public-records exemption allowing information about potential large data centers to remain confidential for up to a year. Under that bill, companies could request confidentiality before filing a formal application with a local government.
ANDREA WATERS 