Florida requires large electricity users to cover their service costs

Covered electric utilities must set rates and service terms that keep large customers’ service costs and unpaid bills from falling on other customers. The rules cover customers expecting monthly peak demand of at least 50 megawatts at one site, measured over 15 minutes. Users sharing a site under an agreement count together; separate sites do not. Utilities cannot knowingly serve covered customers owned or controlled by governments of designated foreign countries of concern, organized or based in those countries, or subsidiaries of those country-based entities. Customers cannot split connections at one site to avoid the rules. Service terms cannot block power cuts intended to protect the grid, prevent wider outages, or protect public safety during emergencies or other exceptional circumstances. The Florida Public Service Commission may approve safeguards such as customer investments, payment guarantees, and payments for reserved capacity even when unused. These requirements took effect July 1, 2026. Covered utilities had to file compliant rates and service terms for commission approval no later than October 1, 2026.

Water management districts and Florida’s Department of Environmental Protection must hold a hearing before approving large data centers’ water permit applications. These rules cover sites with a data center and expected monthly peak electricity demand of at least 50 megawatts over 15 minutes. Users sharing a site under an agreement count together; separate sites do not. Agencies cannot approve water use that harms local water resources or is prohibited by applicable zoning and land-use plans. They must issue a permit if the applicant meets the stated standards, including reasonable use, protection of existing lawful water uses, and the public interest. Treated wastewater must replace some or all proposed surface water or groundwater use when a suitable permitted supply and adequate lines reach the property, the applicant can access it, use is environmentally, economically, and technically feasible, and discharge permit requirements allow it. Applications seeking at least 100,000 gallons per day on average must list water sources, amounts, and losses and include a conservation plan. All permit changes requested by large data centers receive the same review as initial applications. These water permit requirements took effect July 1, 2026.

Local governments retain authority to apply their land-use plans and development rules to large electricity users. This covers customers expecting monthly peak electricity demand of at least 50 megawatts over 15 minutes at one location. Users sharing a site under an agreement count together; separate sites do not. A covered customer cannot be treated as an electric substation under the referenced land-development law. This provision took effect when the measure became law.

Economic development agencies cannot grant the additional confidentiality period for data center business plans. The exception covers plans to locate, relocate, or expand facilities primarily housing equipment that processes, stores, and transmits digital information. It applies regardless of the data center’s electricity demand. The initial confidentiality period requires a written request before an economic incentive agreement is signed. It lasts no more than 12 months from receipt of the request and ends sooner if the information is disclosed. The data center exception took effect July 1, 2026.

The Office of Program Policy Analysis and Government Accountability must commission an independent study of large data centers and recommendations for reducing possible harms. The study covers large data centers’ effects on the economy, natural resources, and public health and safety, including electricity use and costs. The study must identify issues unique to Florida and recommend considerations for facility locations and measures to reduce potential negative effects. The study requirement took effect July 1, 2026. The office must submit the report to the Governor, Senate President, and House Speaker by July 1, 2027.