A bill aimed at regulating large data centers advanced Tuesday in the Florida Senate as lawmakers raised concerns about electricity and water usage, while the House has not yet taken up similar legislation.
The Senate Community Affairs Committee approved the measure (SB 484), which would create a regulatory framework for data centers supporting artificial intelligence and other emerging technologies.
Bill sponsor Sen. Bryan Avila, R-Miami Springs, said the proposal is intended to balance technological growth with protecting Florida’s natural resources and utility customers.
“We want to remain at the forefront of technology,” Avila said. “But we also need to ensure ratepayers are protected from higher electricity costs, which we’ve seen in other states.”
The bill would require data centers to cover the full costs of electric service to prevent cost-shifting to residents and businesses. It would also impose water permitting requirements, as the facilities rely heavily on water for cooling.
Business groups warned the proposal could lead to overregulation. Adam Basford of Associated Industries of Florida said data centers already pay their full electricity costs and that concerns over water use and noise do not reflect how the facilities operate.
Turner Loesel of the James Madison Institute said the organization has concerns that data centers would face additional permitting requirements not imposed on other large industrial users.
Gov. Ron DeSantis has pushed for legislation to prevent Floridians from bearing costs tied to massive data centers as part of a proposed “Artificial Intelligence Bill of Rights.” A related Senate measure is awaiting a hearing before the Appropriations Committee, while the House version has yet to be considered.
Lawmakers also advanced a separate Avila-backed bill (SB 1118) creating a public-records exemption that would keep details about proposed large data centers confidential for up to a year. Sen. Jason Pizzo opposed the measure, arguing the exemption could raise transparency concerns and unfairly benefit large corporations.
The data center bill would require the Florida Public Service Commission to develop tariffs ensuring large energy users pay their full cost of service, including infrastructure and transmission expenses. Utility companies have said such protections are already being developed to ensure residents do not face higher power bills.
Avila’s bill must still clear the Rules Committee before heading to the full Senate.