SB 484 asks Florida utilities to “reasonably ensure” that qualifying large data centers pay their cost of service, but experts say the law does not categorically prevent electricity rate increases tied to data-center growth. The Florida Public Service Commission (PSC) must write detailed pricing rules and approve company plans by Oct. 1. About 25% of customers served by municipal utilities and rural co-ops may fall outside PSC jurisdiction, and fuel costs remain a potential passthrough risk for ratepayers.
Florida’s New Data Center Law Stops Short Of Guaranteeing No Electricity Rate Hikes
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Does Florida’s new law prevent higher electric bills for residents when data centers expand? The short answer: no — not categorically.
SB 484 requires utilities to “reasonably ensure” that certain large data centers cover their cost of service, but legal and policy experts say the statute falls short of an absolute promise that customers won’t face rate increases tied to data center growth.
What The Law Actually Does
The law directs the Florida Public Service Commission (PSC) to design pricing frameworks and enforcement rules so that qualifying data centers shoulder their incremental costs. About 75% of Florida residents are served by utilities regulated by the PSC; the remaining 25% are supplied by municipal utilities and rural electric cooperatives that may not be bound by the state rule.
Importantly, the statute does not address all cost categories: fuel-related expenses remain excluded from the law’s protections, meaning utilities could still pass rising fuel costs on to customers if overall demand increases because of data center load growth.
Political And Practical Context
More than 100 data centers already operate in Florida, though no hyperscale artificial-intelligence (AI) campus has opened in the state yet. The issue has become a campaign flashpoint: Republican U.S. Rep. Byron Donalds has publicly supported data center expansion, while Democrat David Jolly has urged a moratorium on new development.
Gates McGavick, communications director for Donalds’ campaign, told WLRN the PSC must “ensure data centers pay their own cost of service,” and said they expect municipal utilities and co-ops to adopt similar approaches.
Mark McNees, an FSU professor studying data center impacts, cautioned that saying rates "will not" rise overstates the statute’s effect: “Saying rates 'will not' go up because of [the law] claims an outcome the statute does not deliver.”
What Happens Next
The PSC must now translate the statute into concrete pricing rules. Companies affected by the law are required to file compliance plans with the commission by Oct. 1, and the PSC will determine the precise standards, cost-allocation methods and enforcement mechanisms that will govern whether and how customers might be shielded from higher bills.
While the law strengthens the state’s bargaining position with large energy users, it does not create an absolute firewall against rate increases — particularly where fuel costs or jurisdictional gaps (municipal utilities and co-ops) remain in play.
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