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The Data Center Divide

Seminole County

For Seminole County, see Florida’s statewide laws and regulations below. No additional county-specific measures are listed in our research.

Mixed Data Center Policies

Florida’s rules require large data centers to cover their utility-service costs, and water permits may involve added planning and hearings that delay projects; utility service can be denied to some facilities. Qualifying large centers can receive sales-tax breaks, while separate access controls apply to the state’s own data center.

Incentives

Tax benefits
2

Extends the deadline for temporary data-center tax exemption certificates from June 30, 2027 to June 30, 2037 for qualifying data-center owners, tenants and eligible purchasers; the exemption covers data-center property, including electricity used exclusively at a data center.

Florida H7031 (2025)

Provides a sales-tax exemption for qualifying data center property. The sale of “data center property” is exempt from sales tax.

Florida Rule 12A-1.108, Florida Administrative Code

current law · Statewide
Requires large data centers to pay their own electricity costs, meet stricter water-use rules, and follow local land-use regulations.Florida SB 484 (2026)

What this means

Large data centers would face higher costs because they must pay their full utility-service costs, and water permits require extra planning and hearings that can delay projects. Some facilities may also be blocked from utility service, but these rules do not ban data centers generally.

People behind it

  • Committee sponsor of the committee substitute version of the bill.

  • Committee sponsor of an earlier committee substitute version of the bill.

  • Senator and primary sponsor and proposer of Senate Bill 484.

Show 7 more peopleShow fewer people

  • Co-introducer of the bill.

  • Co-introducer of the bill.

  • May approve specified public utility tariffs and must approve tariffs filed to comply with the measure.

  • Must develop and file compliant tariffs and apply required service and cost-allocation provisions for large load customers.

  • Administers consumptive-use permitting requirements for large-scale data centers.

  • Administers consumptive-use permitting requirements for large-scale data centers when applicable.

  • Must contract for an independent study concerning large-scale data centers and submit it to state officials.

Restrictions & requirementsHide restrictions & requirements13

  • Large load customers, including data centers, remain subject to local comprehensive plans and land-development regulations addressing infrastructure capacity, land-use compatibility, environmental impacts, and public facilities and services; they may not be treated as electric substations for these purposes.

  • A large load customer, generally one with an anticipated monthly peak load of at least 50 megawatts at one location, must bear the full cost of its electric service, including connection, transmission, generation, infrastructure, operations, and maintenance costs, without shifting those costs or nonpayment risk to other ratepayers.

  • The Public Service Commission may approve tariffs imposing additional financial and contractual obligations on large load customers, including infrastructure contributions, demand or minimum-demand charges, incremental-generation charges, financial guarantees, minimum load factors, take-or-pay or similar capacity payments, minimum service terms, and early-termination or other violation fees.

  • A public utility may not knowingly provide electric service to a customer that would qualify as a large load customer if the customer is a foreign entity, including one owned or controlled by, organized under the laws of, or principally located in a foreign country of concern.

  • A customer may not divide the electrical load at one location among multiple smaller connections, including through colocation or similar arrangements, to avoid large-load-customer classification and its related tariff requirements.

  • Tariffs, contracts, service requirements, and utility policies may not prevent or hinder curtailment or interruption of a large load customer's electric service when needed for grid stability, to reduce broader outages, or to protect public safety during an emergency or other exceptional circumstance.

  • Each public utility must file a tariff complying with the large-load requirements for Public Service Commission approval by October 1, 2026.

  • A water management district or the Department of Environmental Protection may not issue a water-use permit to a large-scale data center if the proposed use would harm area water resources or violate applicable local zoning regulations or the comprehensive plan.

  • A large-scale data center seeking a water allocation must establish that the proposed use is reasonable-beneficial, will not interfere with an existing legal water use, and is consistent with the public interest.

  • A water-management agency must require a large-scale data center to use reclaimed water instead of some or all proposed surface-water or groundwater use when a suitable permitted source and adequate infrastructure are available, the applicant can access it, reclaimed-water use is environmentally, economically, and technically feasible, and it would not conflict with an applicable surface-water discharge permit.

  • A large-scale data center water-permit application requesting at least 100,000 gallons per day on average must identify all water sources, amounts, and losses for cooling, industrial and treatment processes, employee needs, and landscaping, and must include a conservation plan addressing cooling-water recycling, leak detection and repair, water-efficient fixtures, and employee conservation education.

  • A water-use permit application by a large-scale data center may not be approved without a hearing.

  • A water-use modification involving at least 100,000 gallons per day, or any modification proposed by a large-scale data center, must be processed under the same requirements as an initial permit application rather than receiving discretionary approval without a hearing.

Benefits & exceptionsHide benefits & exceptions9

  • Creates a dedicated statewide permitting process for qualifying large-scale data centers.

  • Allows reclaimed water to be used in the permitting process for qualifying data centers.

  • Requires a water-management district or the Department of Environmental Protection to issue a water-allocation permit to a large-scale data center applicant that proves the use is reasonable-beneficial, will not interfere with existing legal water uses, and is consistent with the public interest. The permit may still be denied if the use would harm area water resources or violate local zoning or the comprehensive plan. A permit shall be issued

  • Allows the Public Service Commission to approve tariffs and service agreements for large load customers using infrastructure-financing and cost-recovery tools, including customer infrastructure contributions that may be returned over time, demand or incremental-generation charges, financial guarantees, minimum load factors, take-or-pay provisions, minimum billing, and minimum service periods. utility industry-accepted ratemaking and other financial tools

  • Provides a defined framework for large load customers to obtain electric service through approved tariffs and minimum service requirements, subject to Public Service Commission approval, cost-allocation requirements, reliability conditions, and the customer's responsibility for applicable service costs. minimum tariff and service requirements for large load customers

  • Provides for recovery of generation, transmission, distribution, interconnection, and other incremental infrastructure costs from the data center or its utility arrangements, rather than shifting those costs to other customers.

  • Prohibits treating a large load customer as an electric substation for purposes of specified state land-development law, avoiding requirements that apply specifically to substations. may not be considered an electric substation

  • Limits future state or local actions from blocking or restricting a qualifying data-center project solely because it is a large electricity user, provided the project satisfies the measure's other requirements.

  • Keeps information about a data center's plans or interest in locating, relocating, or expanding confidential for up to 12 months after an economic development agency receives a written request, or until disclosure occurs; the usual additional 12-month extension for other projects does not apply. information ... is confidential

Sources

current law · Statewide
Exempts qualifying data center property from Florida sales tax when the facility and its owners and tenants meet the specified investment and power-capacity thresholds within five years of construction, including at least $150 million in cumulative capital investment, a critical IT load of 15 megawatts or higher, and at least 1 megawatt for each owner or tenant.Florida Rule 12A-1.108, Florida Administrative Code

What this means

The rule gives qualifying data centers a meaningful sales-tax break on property used to build, equip, and operate them, including certain electricity charges (exemption for data center property). The benefit is limited to centers meeting high investment and power-use thresholds, with applications, certifications, and ongoing compliance, so it encourages large projects rather than helping every data center.

People behind it

  • Administers the exemption, including issuing certificates and reviewing continued eligibility.

Restrictions & requirementsHide restrictions & requirements5

  • To qualify for the sales-tax exemption, a data center must have at least $150 million in cumulative owner and tenant capital investment made after July 1, 2017, excluding specified acquisition expenses; at least 15 megawatts of critical IT load; and at least 1 megawatt of dedicated critical IT load for each owner or tenant. These requirements must be met within five years after construction begins.

  • The exemption requires an application and Department of Revenue certificates. To obtain the final certificate, the owner must provide certifications from a professional engineer confirming critical IT load and a Florida CPA confirming the required investment.

  • Registered data centers are reviewed every five years. Within three months before each review period ends, the owner must submit a sworn declaration that the critical IT load requirements are met and the center remains compliant. If it is no longer compliant, the exemption certificate may be revoked, and purchasers may owe avoided taxes, penalties, and interest.

  • The exemption does not cover rent or license charges for real property, although specified electricity charges may qualify. This limits which data center expenses can receive the tax exemption.

  • Owners must obtain a temporary exemption certificate between July 1, 2017, and June 30, 2027, and meet all requirements for the final certificate within five years. The Department will not process applications for a temporary certificate after June 30, 2027.

Benefits & exceptionsHide benefits & exceptions2

  • Qualifying data centers can buy or lease eligible data center property without sales tax. To qualify, the center must meet the statutory definition, reach at least $150 million in cumulative qualifying capital investment and 15 MW of critical IT load, and provide at least 1 MW of dedicated critical IT load for each owner or tenant, all within five years after construction begins. Owners must apply for the temporary certificate by June 30, 2027, and satisfy the requirements for the permanent certificate within five years. The exemption does not cover rent for real property. The sale of “data center property” is exempt from sales tax.

  • Certain electricity charges are exempt as data center property: charges billed directly by a utility to the data center owner or tenant, and charges billed by an owner to a tenant when separately stated and no higher than the utility’s charge to the owner. Required exemption documentation applies. The following charges for electricity are exempt.

Sources

current law · Statewide
Sets physical-access requirements for State Data Center visitors, who must provide government-issued photo ID, visit for official business, record specified details in a visitor log, and wear an issued badge; access to the raised-floor area is subject to escort or vendor screening requirements.Florida 60GG-3 Data Center Operations

What this means

The rules apply to Florida’s State Data Center, not data center construction or expansion generally. They add modest operating requirements, such as visitor identification and access controls, so the overall effect is minor.

People behind it

  • Responsible for developing and implementing the State Data Center cost-recovery mechanisms described in the chapter.

Restrictions & requirementsHide restrictions & requirements5

  • Visitors to the State Data Center must meet access conditions: provide government-issued photo ID, visit for official SDC or customer-entity business (or state business), sign a log with specified details, and wear an SDC-issued badge.

  • Access to raised-floor areas is restricted: vendors may enter unescorted only if they passed a CJIS background screening within the previous five years and completed CJIS security training within the previous two years with a score of at least 70%. Other vendors must be escorted by an approved CJIS-compliant customer-entity employee; non-vendor visitors must be escorted by SDC staff.

  • Mechanical and high-power rooms are off limits to visitors: access is allowed only when necessary and approved in writing by a designated SDC official, and visitors must be accompanied by SDC management employees.

  • The communications equipment room requires an SDC staff escort.

  • The Department of Management Services must recover the full direct and indirect costs of services: state customer entities are charged for services, with actual use reconciled at fiscal year-end; invoices are payable upon receipt and no later than 40 days after receipt.

Sources

current law · Statewide
Raises the power-capacity threshold for data centers to qualify for sales-tax exemptions from 15 to 100 megawatts and extends the deadline for new exemption certificates to 2037.Florida H7031 (2025)

What this means

The measure extends a sales-tax break for qualifying data centers through 2037, helping larger projects. But it raises the required size to 100 megawatts, so many smaller centers will not qualify.

Timing

Ends
Jul 1, 2027

The measure establishes a moratorium on local government regulation of artificial intelligence, expiring on 2027-07-01. All other provisions remain. Some document summaries do not identify a moratorium, creating a discrepancy.

People behind it

  • Primary sponsor of the general bill

  • Primary sponsor of the general bill

  • Co-sponsor of the bill

Show 3 more peopleShow fewer people

  • Co-sponsor of the bill

  • Signed the bill into law

  • Administers the data center property temporary tax exemption application and issues approval or denial of the permit

Restrictions & requirementsHide restrictions & requirements21

  • Local-government approval through applicable comprehensive-plan, zoning, and site-plan review is required before a data-center campus may be built or expanded.

  • The local approval process must include public notice and a public hearing.

  • Local approval must address impacts on noise, water supply, wastewater, traffic, stormwater, and emergency services.

  • Local governments may impose development conditions and require the data center to pay for or construct infrastructure needed to serve the campus.

  • Data centers must comply with applicable noise limits and use noise-control or mitigation measures when necessary to protect nearby properties.

  • Data centers using significant amounts of water must meet specified water-supply and water-conservation requirements.

  • Studies, plans, or other documentation concerning environmental, infrastructure, and emergency-response impacts may be required before approval or operation.

  • A customer with expected electric demand of at least 25 megawatts is treated as a large-load customer and is subject to special utility tariffs.

  • Electric utilities must assign large-load customers the costs of serving their load, including related generation, transmission, distribution, and interconnection facilities.

  • Large-load customers may be subject to minimum-billing and minimum-contract requirements, including payment based on a specified portion of contracted capacity even when less electricity is used.

  • Large-load customers must provide financial security or other assurances for obligations related to new service, facility construction, and potential early termination.

  • To qualify for the data-center sales-tax exemption, a facility must have a critical IT load of at least 100 megawatts, including at least 1 megawatt dedicated to each individual owner or tenant.

  • The facility must make at least $150 million in cumulative capital investment, and the investment and critical-load requirements must be met within five years after construction begins.

  • The facility must be used exclusively to house and operate data-processing equipment or equipment necessary for its operation.

  • Applicants must file a complete application, obtain Department of Revenue approval and a temporary tax-exemption certificate specifying its validity period, maintain supporting records, and later provide certifications from a licensed professional engineer and a Florida certified public accountant.

  • Owners, tenants, contractors, and other purchasers must provide the seller with the required exemption documentation, including the tax-exemption certificate and signed certificate of entitlement, before or at the time of purchase.

  • The exemption requires continuing operation as a qualifying data center, with a Department of Revenue review every five years confirming the 100-megawatt overall load and 1-megawatt-per-owner-or-tenant requirement.

  • If the facility or purchaser fails to meet the exemption criteria, the exempted taxes become immediately due with applicable interest and penalties, and the Department of Revenue may assess them within six years after purchase.

  • The Department of Revenue may not issue new temporary data-center tax-exemption certificates after June 30, 2037.

  • For a refund of previously paid tax, the applicant must also file Form DR-26S within the applicable statutory limits.

  • If an acquired facility was operating as a data center within six months after acquisition, its acquisition cost cannot be counted toward the cumulative capital investment required for the exemption.

Benefits & exceptionsHide benefits & exceptions11

  • Provides a sales and use tax exemption for qualifying data-center property used to construct, expand, or operate a facility, including construction materials, machinery, servers, software, electricity, and property used to power, cool, secure, dehumidify, support, or protect the facility, including contiguous dedicated substations. Eligibility includes statutory certification requirements, at least $150 million in cumulative capital investment, a critical IT load of at least 100 megawatts, at least 1 megawatt dedicated to each owner or tenant, and the required employment criteria; the investment and load requirements must generally be met within five years after construction begins.

  • Allows qualifying data centers to obtain a temporary sales-tax exemption certificate while being developed and a permanent certificate after the required investment, load, employment, and other requirements are verified. The permanent certificate remains effective while the facility continues to qualify, subject to five-year departmental reviews; no new temporary certificates may be issued after June 30, 2037.

  • Allows a qualifying data center to seek a refund of sales or use tax already paid on eligible property by filing the required refund application within the applicable statutory time limits.

  • Repeals Florida's commercial rental tax on leases, rentals, and licenses of real property effective October 1, 2025, eliminating that state sales tax for commercial data-center sites and facilities.

  • Requires local governments to allow certified data centers as a permitted use in appropriate industrial or commercial zoning districts, subject to applicable site-plan and building requirements rather than special-exception or conditional-use approval.

  • Creates an expedited local permitting process for qualifying data-center projects, including specified review deadlines and limits on duplicative local requirements.

  • Restricts local governments from adopting or enforcing regulations, moratoria, or other measures that prohibit or unreasonably limit the construction, expansion, or operation of certified data centers, and preempts conflicting local regulation.

  • Allows electric utilities to establish special rates or service terms for data centers that assign the incremental costs of additional generation, transmission, distribution, and interconnection infrastructure to the facilities receiving the service.

  • Allows utilities to require financial assurances from data centers requesting large electric loads or related infrastructure to protect against costs if a project is delayed, reduced, or canceled.

  • Requires counties and municipalities to prioritize specified communications-tax proceeds for the timely review, processing, and approval of rights-of-way permit applications for communications-service providers, subject to applicable state and federal review deadlines.

  • Generally freezes the local communications-services tax rate in effect on January 1, 2023, and bars adding certain discretionary sales surtax increases to that tax before January 1, 2031, limiting near-term communications-related tax increases.

Sources

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