Florida Governor DeSantis Signs Law Regulating AI Data Centers to Protect Ratepayers
May 10, 2026
Florida Governor DeSantis Signs Law Regulating AI Data Centers to Protect Ratepayers
Florida Governor Ron DeSantis has signed into law a bill (SB 484) that imposes new regulations on large-scale data centers powering artificial intelligence, ensuring that residential utility customers do not shoulder the associated infrastructure costs. The legislation, signed on Thursday at Florida Polytechnic University in Lakeland, represents a significant step in the state's approach to managing the rapid expansion of energy-intensive AI infrastructure.
The new law mandates that the Florida Public Service Commission develop specific tariffs and service requirements for large-load customers. These measures are designed to guarantee that hyperscale data centers bear the full cost of their connection to the electric grid, including expenses related to increased power transmission and generation, preventing any cost-shifting to the general body of ratepayers. “You should not pay one more red cent for electricity because of a hyper-scale data center as an individual,” DeSantis stated at the signing event, emphasizing that it is unjust for the wealthiest companies in history to have their costs subsidized by Florida families.
The legislation is a central component of DeSantis' broader push to regulate AI, although a separate, more stringent "AI Bill of Rights" aimed at consumer protections failed to pass the state House. The data center bill also reinforces the authority of local governments to refuse such developments within their jurisdictions, while simultaneously allowing them to enter into non-disclosure agreements with tech companies for up to 12 months, temporarily shielding proposals from public view.
The debate surrounding the bill was heavily focused on the immense resource consumption of these facilities, which can use vast amounts of water and place significant strain on electrical grids. During a February Senate committee hearing, bill sponsor Senator Bryan Avila cited a 2025 McKinsey & Company report, warning that global demand for data center capacity is projected to triple by 2030, with a 20 to 25 percent annual growth rate expected within the United States. Avila argued the law is essential to prevent Florida from experiencing the "dramatic increases" in utility rates seen in states like Virginia. The law comes amid heightened scrutiny from the DeSantis administration, following Commerce Secretary Alex Kelly’s recent criticism of a proposed 4.4 million square foot data center in Fort Meade, which would have consumed up to 50,000 gallons of water per day.
Source: orlandoweekly
