Proposed Florida Legislation Creates New Regulatory Framework for Hyperscale Data Centers

Florida's 2026 Legislative Session is underway, and lawmakers there have introduced several bills that would regulate how hyperscale data centers are to be developed and operated in the state. This Holland & Knight alert analyzes those bills, namely: Florida Senate Bill (SB) 484, SB 1118, House Bill (HB) 1007 and HB 1517, collectively referred to as "proposed bills." The proposed bills are subject to change as they move through the committee process in their respective chambers.

Key Definitions and Scope

For purposes of this alert, a "data center" is a facility primarily housing electronic equipment to process, store and transmit digital information, whether a freestanding structure or a facility within a larger structure, with environmental controls to maintain proper equipment operating conditions. The regulatory framework in SB 484 would apply only to "large-scale data centers" with a monthly peak load of 50 megawatts (MWs) or more, while HB 1007 would apply to "hyperscale data centers" requiring at least "25 megawatts of energy resources."

Senate Bills

SB 484

SB 484 would establish a comprehensive framework for regulating data center development in Florida and would take effect on July 1, 2026.

Key provisions in SB 484 include those that would:

• preserve local government control over comprehensive planning and land development regulation for large-load customers
• require the Florida Public Service Commission (PSC) to adopt rules establishing baseline tariff and service requirements for investor-owned electric utilities (IOUs) serving "large load customers," which the bill defines as customers with an anticipated monthly peak load of 50 MWs or more. The minimum tariff requirements outlined in the bill may include, but are not limited to, the following elements: contributions in aid of construction, demand/minimum charges, incremental generation charges, financial guarantees, minimum load factors, take‑or‑pay provisions and minimum service term requirements with early termination fees. These elements are substantially similar to Large Load Contract Service Tariffs that the PSC recently approved in Final Order No. PSC-02026-0022-S-EI (January 22, 2026) and are intended to ensure that large-load customers bear the full cost of their service to prevent cost shifting to the general body of ratepayers.
• prohibit IOUs from providing electric service to a large-load customer if such customer is a "foreign entity" or is owned or controlled by a "foreign entity of concern"
• establish distinct consumptive use water permitting requirements for large-scale data centers, including mandates to utilize reclaimed water where feasible
• prohibit state agencies from entering into non-disclosure agreements (NDAs) or similar contracts that restrict public disclosure about potential data center developments; however, these prohibitions would apply only to NDAs entered after July 1, 2016

SB 484 was initially referred to the Senate's Regulated Industries, Community Affairs and Rules Committees. The bill has been reported favorably out of the Regulated Industries and Community Affairs Committees and now is pending before the Rules Committee.

SB 1118

SB 1118 would establish exemptions from public records laws to protect confidential data center information provided to a county or municipality from disclosure. The bill protects a data center developer's "proprietary confidential business information;" however, those protections are not absolute. For example, confidentiality would be preserved for no more than 12 months, and the local government must still broadly disclose that the otherwise-confidential project is a data center.

SB 1118 is traveling through the committee process in tandem with SB 484 and has the same effective date as SB 484 (i.e., July 1, 2026). Like SB 484, the bill was referred to the Senate's Regulated Industries, Community Affairs and Rules Committees. The bill has been reported favorably out of the Regulated Industries and Community Affairs Committees and is pending before the Rules Committee.

House Bills

HB 1007

Compared to SB 484, HB 1007 would establish a much more restrictive regulatory framework designed to limit the development of hyperscale data centers by employing definitive siting prohibitions, land use limitations, water permitting restrictions, bans on economic incentives and insurance constraints. HB 1007 would take effect on July 1, 2026.

Key provisions of HB 1007 include those that would:

• amend Section 125.66, Florida Statutes to allow counties to adopt ordinances targeting hyperscale data centers without considering beneficial economic impacts
• amend Florida's comprehensive plan statute to 1) prohibit mixed-use land use designations for hyperscale data centers, 2) require plan amendments relating to hyperscale data centers to undergo rigorous "state coordinated review" and 3) for the first time, include the PSC as a "reviewing agency"
• prohibit the siting of a hyperscale data center for all agricultural, conservation, environmental stewardship, mixed-use and residential land use categories
• mandate a minimum 500-foot set back and screening concepts for hyperscale data centers
• impose rigorous approval processes on substations to be owned by hyperscale data centers
• prohibit local and state economic incentives for hyperscale data centers
• create a new "siting board" comprised of the governor and cabinet to review and approve private hyperscale data center projects
• prohibit IOUs from collecting impact fees from residential or commercial customers that are designed to recover capital costs for the construction of a new hyperscale data center
• impose onerous consumptive use water permit processes if the application relates to a hyperscale data center, which includes requiring notice by certified mail to all property owners within a 10-mile radius of the proposed data center
• mandate formal hearings for hyperscale data center water permit applications, regardless of requested water volumes
• prohibit state and local economic incentives that support development of hyperscale data centers
• prevent insurers from pooling hyperscale data center assigned risks with any other kinds or combination of kinds of insurance as a risk-management strategy

Initially, HB 1007 was referred to the House's State Affairs, Budget and Commerce Committees. At this juncture, the bill has not been heard by any committee and currently is pending in the State Affairs Committee.

HB 1517

HB 1517, titled the Florida Data Center Transparency Act, would require a data center developer to make detailed disclosures at the application stage regarding projected energy, water, carbon emissions, noise and other environmental impacts. In stark contrast to SB 1118, this bill would eviscerate current exemptions from public records laws that protect confidential data center information from public disclosure. Failure to comply with the disclosure requirements would subject data center developers to penalties and fines. The bill would take effect on July 1, 2026, and existing facilities would be required to provide the same disclosures by August 1, 2026.

HB 1517 was initially referred to the House's Economic Infrastructure, State Affairs and Commerce Committees. At this juncture, the bill has not been heard by any committee and currently resides in the Economic Infrastructure Committee.

Key Takeaways

As currently proposed, bills in the Florida House are far more restrictive toward data center development than those in the Florida Senate. However, the Florida Legislative Session has just begun, and only time will tell how Florida's statutory landscape for hyperscale data centers will evolve. The session is scheduled to conclude on March 13, 2026.

If you have questions about how the proposed bills could affect your business or the current status of data center regulation in Florida, please contact the authors.

Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem, and it should not be substituted for legal advice, which relies on a specific factual analysis. Moreover, the laws of each jurisdiction are different and are constantly changing. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. If you have specific questions regarding a particular fact situation, we urge you to consult the authors of this publication, your Holland & Knight representative or other competent legal counsel.