While President Donald Trump is pushing for rapid development of data centers to help the nation dominate AI technology, Gov. Ron DeSantis is taking a cautious approach as concerns rise about the effect the massive centers have on communities.
There are few who doubt the massive data centers have become a necessity along the lines of electricity and gasoline, but at what cost? The topic is sure to be a priority during Session as the industry eyes Florida as a prime spot for data centers and policymakers try to balance community concerns.
“A lot of people have a lot of concerns about some of the things that are on the horizon,” DeSantis said during a roundtable discussion on AI.
While Trump is trying to make it easier for technology companies to create new data centers, DeSantis said he is thinking about Floridians first — not the nation’s most powerful technology companies.
“We want to approach this in the state of Florida in a very intelligent way,” DeSantis said. “Ultimately, we’ve got to care about the well-being of our people, not worry about the profits of the Magnificent Seven. They’re doing just fine and they will do just fine.”
The centers store massive amounts of digital information, from banking records to social media data to the information AI taps to create its products. Industry supporters tout not just the need for the centers, but say they provide high-paying jobs and property taxes for communities that welcome them.
Loudoun County, Virginia, is a data center hub, with nearly 50 million square feet of centers built or in development, according to the Loudoun County Economic Development’s website.
The county receives about $1.2 billion in revenue from data centers, said Buddy Rizer, Executive Director of Loudoun Economic Development. He said the county’s property tax revenue split has gone from 19% commercial and 81% residential to about an even split.
Data centers make up 39% of the county’s revenue, but only take up 3% of the county’s land.
“We’ve been able to lower the tax rate 48 cents on the dollar,” Rizer said. “That’s a pretty awesome statistic.”
Rizer, University of Georgia engineering professor David Gattie and Jacksonville-based lobbyist Kevin Doyle were recently in Tallahassee to meet with policymakers to promote data centers.
They also talked with Florida Politics about what a typical center would look like in Florida. An average facility would be about 250,000 square feet — the equivalent to nearly 7 acres or five football fields. It would have a professional looking front office and the remainder of the facility would look like a giant warehouse. It would require 300 megawatts of electricity, or roughly the same amount needed to keep the entire city of Tallahassee powered.
The power supply would have to be at a constant level, 24 hours a day, instead of peaks and dips that come with normal business and residential demands. It would also employ 570 people once construction is completed, with most being paid more than $100,000, including electricians and cooling and heating technicians.
But watchdogs say the enormous amount of power and water needed to keep the facility cool could harm the environment and communities, especially if residents share a burden of the cost to generate more power. They also aren’t the most scenic of facilities, and while some people agree the nation needs them, they don’t want them in their backyards.
“These centers are incredibly unpopular right now, and the concerns are valid,” said Democratic Rep. Anna Eskamani. “It’s one of those rare areas of agreement when it comes to Gov. DeSantis.”
DeSantis is proposing a consumer “bill of rights” regarding AI and data centers, saying communities should be able to say no if they don’t want them. He also wants guarantees that data centers won’t drive up electricity costs for residents and that major data companies won’t be given tax incentives to build.
At his roundtable discussion, DeSantis downplayed the economic boom promised by data centers.
“The thing about the data centers, there’s not really a big economic impact” after their initial construction, DeSantis said. “Once it’s done, it employs like a half-dozen people, and these tech companies will likely bring in foreigners to that on some visa. They’re not going to hire from your local community. That’s just not what they do.”
He said regardless of political party, more and more people are opposing them.
“Is this something that’s going to benefit the community?” he said. “By and large, and this is across party lines, I think people are saying no dice on that.”