Senate approves Bryan Ávila’s data center regulation bill as its companion advances to the House floor

The Senate has approved a proposal by Hialeah Gardens Republican Sen. Bryan Ávila meant to protect consumers and ratepayers from utility costs associated with large-scale data centers.

The Senate voted 37-0 in favor of SB 484, which would establish a comprehensive framework governing “large load customers” — which are defined as facilities with an anticipated monthly peak load of 50 megawatts or more at a single location, a threshold that captures many hyperscale data centers.

The vote took place on the same day the House Commerce Committee voted to advance the measure’s companion bill (HB 1007) filed by Panama City Republican Rep. Griff Griffitts.

The bills are nearly identical. But unlike SB 484, the House bill includes a provision that prohibits permits for new data centers that use over 50 megawatts within 5 miles of any residential property or school — unless the local governing body waives it by unanimous vote.

Ávila told Senators that surging demand from artificial intelligence and hyperscale data centers is contributing to rising electricity costs nationwide. He cited national analyses warning that global data center demand is projected to triple by 2030. The legislation, he said, would ensure Florida does not repeat mistakes seen in other states where ratepayers absorbed costs tied to large-scale energy users.

“We’ve seen in other states, particularly in Virginia, where a lot of their rate payers have seen a dramatic increase because they did not have the necessary safeguards for their residents and their ratepayers, and that is what we are doing here today,” Ávila said.

The proposal would require the Florida Public Service Commission to develop minimum tariff and service requirements to ensure large-load customers bear their own full cost of service, and that those costs are not shifted onto other utility ratepayers. Utilities must also implement financial protections, such as performance and financial security arrangements, to minimize the risk of nonpayment.

The measure also prohibits public utilities from providing electric service to a large-load customer that qualifies as a “foreign entity” tied to a foreign country of concern, and bars customers from splitting a single electrical load into smaller connections to avoid regulation as a large-load customer.

SB 484 also addresses land use and transparency. The bill clarifies that local governments retain authority over comprehensive planning and land development regulations as they relate to large-load customers, and it specifies that a large-load customer may not be treated as an electric substation for zoning purposes.

The measure also prohibits state and local agencies from entering into nondisclosure agreements that restrict disclosure of information about potential data center developments. Agencies that violate the provision face civil fines of up to $1,000.

The bill also addresses water use concerns. It creates a framework that requires permits to only be issued if the water is for a “reasonable-beneficial” use, does not interfere with existing legal obligations, and is consistent with public interests. It also requires the use of reclaimed water when it is available and feasible. Applications requesting at least 100,000 gallons per day must include detailed water conservation plans, and permits may not be approved without a hearing.

Hollywood independent Sen. Jason Pizzo questioned language changes made in the Rules Committee that shifted the standard from ratepayers bearing “no risk” of nonpayment to requiring that risk be “minimized.”

“The change from no risk to minimized risk kind of feels like it might be a big difference,” Pizzo said.

Ávila explained that while some level of risk exists in any business arrangement, the bill provides “clear guidance” that the general body of ratepayers may not bear those costs and requires utilities to conduct due diligence when entering into agreements with large-load customers. 

“Certainly there’s a risk that maybe the utility doesn’t do the right thing and next thing you know they’re in a financial pickle, there’s always some risk associated,” he said. “What we’re saying here is to try to mitigate that risk as much as possible so that our rate payers, our residents, do not bear any of the cost associated with servicing a large-load customer.”

Debate also focused on transparency and public disclosure. Ávila explained that a floor amendment requires disclosure when a proposed economic development project involves a data center, and eliminates a previously allowed 12-month confidentiality extension. He also emphasized that the bill reinforces existing local governments authority over comprehensive planning, zoning and land development regulations related to any proposed data centers.

“It’s a local matter to the local governments as it relates to planning, land development, zoning,” Ávila said. “So that’s why we reinforce that in our bill … where we restated our support for local government taking the lead on those actions.”

With SB 484 now approved in the Senate and HB 1007 advancing to the House floor, the measure appears well-positioned headed into the final weeks of the Legislative Session if the chambers can resolve language differences. If approved by the Legislature and signed by the Governor, most provisions in the measure would take effect July 1.