Governor Ron DeSantis signed Senate Bill 484 into law today, May 7, 2026, during a ceremony at Florida Polytechnic University in Lakeland.
The legislation is designed to protect Florida residents from the rising utility costs and environmental impacts associated with “hyperscale” data centers, which have become increasingly common due to the rapid growth of artificial intelligence.
Key Provisions of the New Law
The bill introduces several specific safeguards intended to keep the financial and environmental burden off local communities:
- Ratepayer Protection: Public utilities are now required to ensure that the massive costs of powering these data centers—including infrastructure upgrades and increased power generation—are paid for by the data centers themselves through specific “tariffs,” rather than being passed on to individual Florida households.
- Local Authority: The law reinforces the power of local governments to manage their own land-use and comprehensive planning. Cities and counties maintain the right to refuse the construction of these facilities if they don’t align with local development goals.
- Water Conservation: To protect Florida’s water resources, the law mandates that large-scale data centers prioritize the use of reclaimed water for cooling systems whenever it is technically and economically feasible.
- Transparency: Any proposed data center must now undergo public hearings. This ensures that utility and water impacts are discussed openly before any projects are approved.
Rationale Behind the Move
During the signing, DeSantis emphasized that individual Floridians should not have to “subsidize” the operations of some of the wealthiest tech companies in the world. He framed the bill as a proactive step to prevent the utility rate spikes seen in other states like Virginia, where massive data center expansion has strained the electrical grid.
The law is set to officially take effect on July 1, 2026.