Florida Governor Ron DeSantis has signed SB 484 into law, enacting a sweeping set of regulations that govern how large data centers are permitted, powered, and financed across the state.

The legislation, which takes effect July 1, 2026, addresses a broad range of concerns from utility cost allocation and water consumption to local zoning authority and national security.

Ratepayer Protections at the Core

One of the central provisions of SB 484 is a prohibition on utilities passing data center infrastructure costs on to residential and small-business ratepayers.

Under the new law, large-scale data center users will be required to bear their full cost of service, ensuring that the substantial grid investments needed to power these facilities are not distributed across the broader customer base.

The governor cited consumer protection as a primary motivation for signing the bill. "SB 484 ensures that local governments maintain the authority to reject data center development in their communities, prevents data center costs from being passed on to consumers, including electricity costs, and protects Florida's water resources from data center consumption," DeSantis said during a signing ceremony in Lakeland.

The law also contains a national security dimension, barring utilities from providing service to data centers owned or controlled by foreign countries of concern.

This provision adds Florida to a growing list of states attempting to address geopolitical risks embedded in critical digital infrastructure.

Local Governments Retain Zoning and Permitting Authority

SB 484 explicitly preserves the authority of local governments over zoning, permitting, and planning decisions related to data center development.

Communities are empowered under the law to impose stricter standards than state minimums or to deny projects outright, giving municipal and county governments a meaningful check on where and how these facilities are built.

The law also establishes a dedicated permitting process specifically for large-scale data centers. Notably, major modifications to approved facilities will be treated as new applications rather than simple amendments, a provision designed to prevent developers from making significant changes to projects after initial approvals have been granted.

Water Use Restrictions and Reclaimed Water Concession

Water consumption by data centers was another focal point of the legislation.

Florida's rapid data center expansion has raised concerns about the sector's demand on freshwater resources, and SB 484 responds by blocking water management districts and the Department of Environmental Protection from issuing consumptive use permits to large-scale data centers under certain conditions.

At the same time, the law includes a concession aimed at giving operators a path forward: reclaimed water will be allowed to count toward permitting requirements.

This provision acknowledges the industry's push for access to alternative water sources while still restricting the draw on freshwater supplies.

DeSantis specifically highlighted water resource protection as one of three key pillars of the legislation, alongside consumer cost protection and local government authority.

Transparency Requirements and Classification Definitions

The law introduces transparency obligations that require public disclosure of data center development agreements once an initial exemption period expires.

This provision is intended to increase accountability in the deal-making process between data center developers and local or state entities.

SB 484 also establishes statutory definitions designed to close classification loopholes that have previously allowed certain facilities to avoid the regulatory scrutiny applied to traditional large-scale data centers.

By codifying clearer definitions, the legislature aims to ensure that facilities cannot evade new requirements by structuring their operations in ways that fall outside existing categories.

Strong Legislative Support

The bill advanced through the Florida legislature with significant bipartisan backing. It passed the Florida Senate by a vote of 37 to 0 before clearing the House 92 to 16.

The Senate then provided final approval in a 31 to 6 vote before the bill was sent to DeSantis for his signature.

The lopsided margins in both chambers reflect the broad consensus among Florida lawmakers that the rapid expansion of hyperscale data center development warranted a comprehensive regulatory response touching on utility economics, environmental protection, and community planning rights.

Florida Joins a Growing State-Level Movement

Florida's move places it alongside other states that have enacted legislation focused on protecting ratepayers from the financial impacts of data center growth.

Ohio was among the first states to address this issue. The Public Utilities Commission of Ohio approved a new rate class in July, requiring new data center customers in Ohio to pay for a portion of their energy requests even if they use less than that amount, in order to cover the cost of the infrastructure required to deliver electricity to those facilities.

The pattern of state-level action reflects a broader tension between the economic development opportunities presented by large data center investments and the costs and burdens those investments impose on existing utility customers, local water supplies, and municipal planning processes.

Florida's SB 484, with its combination of ratepayer safeguards, water restrictions, local authority protections, and national security provisions, represents one of the more comprehensive legislative responses to that tension enacted to date.