DeSantis Signs First U.S. Law Regulating Hyperscale Data Centers

Ron DeSantis signed Senate Bill 484 into law, making Florida the first U.S. state to regulate the energy and water impacts of large-scale data centers that power artificial intelligence. The law requires the Florida Public Service Commission to develop tariffs ensuring that data centers consuming at least 50 megawatts shoulder the full cost of their electricity, preventing those expenses from being shifted to average ratepayers. It also mandates that water-management districts deny permits when data center water usage would harm local resources and requires the use of reclaimed water when available.

The legislation restores local government authority to approve, regulate, or veto data center projects and requires public meetings on water use and utility impacts. Data centers must also apply for consumptive use permits to access state water resources. The Office of Program Policy Analysis and Government Accountability is directed to conduct a study on data center operations. DeSantis warned that Floridians should not subsidize hyperscale facilities, a concern driving the bill after a Fort Meade city commission approved a 4.4 million-square-foot data center project that Secretary of Commerce Alex Kelly called fundamentally flawed.

State Senator Bryan Avila sponsored the bill, while House Speaker Daniel Perez argued that individual protections should be addressed at the federal level. The law follows a failed AI Bill of Rights in the Florida House. Supporters cite rising energy and water demands from data centers, while critics argue the rules overregulate and could harm economic benefits. Pinellas County commissioners are already considering banning data centers or denying tax incentives over water concerns.