Florida House Panel Advances Data Center Bill 24-1, Targeting Power and Water Costs

WHAT HAPPENED: The Florida House State Affairs Committee voted 24-1 Tuesday to advance HB 1007, legislation placing new restrictions on large-scale data centers as part of Gov. Ron DeSantis' push to regulate artificial intelligence.

WHAT IT MEANS: Florida utility ratepayers could be shielded from absorbing the electricity and grid-upgrade costs generated by massive data centers. The bill directs the Public Service Commission to set rates ensuring that large data center operators — not general ratepayers — bear the full cost of connecting to electric systems and increasing power transmission and generation capacity. The bill also bans construction of a data center within five miles of any residential property or school unless the local government unanimously approves.

WHO IS AFFECTED: Electric utility customers statewide who currently could see those infrastructure costs shifted onto their bills. Developers and companies scouting Florida sites for large-scale data centers face new siting constraints and are prohibited from using nondisclosure agreements during the site-selection process under the measure.

WHAT WE DON'T KNOW: The bill must clear two more House committees with less than three weeks remaining in the regular session. Companion Senate bills — SB 484 on data centers and SB 482, an "AI Bill of Rights" — were expected before the full Senate on Wednesday. It is unclear whether the House and Senate versions are identical.

WHAT TO WATCH: HB 1007's next two committee appearances; Senate floor votes on SB 484 and SB 482 expected Wednesday.

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