Florida city, county move to freeze new data centers as fears grow over power, water, and surveillance

Officials in Palm Coast and Flagler County, Florida, are considering a temporary pause on additional data center projects as they weigh concerns about heavy electricity demand, water consumption, and possible surveillance implications.

If approved, the pause would give local leaders time to revise zoning and land-use standards before larger proposals move forward.

What happened?

In mid-May, Flagler County commissioners backed an effort to examine a one-year suspension on new data centers, and in Palm Coast, the county's most populous city, the council soon took a similar step by seeking a quick rewrite of development rules for the industry, FlaglerLive reported.

Even if some officials avoid calling it a "moratorium," either approach would temporarily block new approvals while those regulations are being reconsidered.

There are no new applications pending right now, but officials said interest is already surfacing. Palm Coast also has a smaller data center under construction that will operate as a cable-landing station linked to undersea lines coming ashore in Flagler Beach, according to FlaglerLive.

County Commissioner Andy Dance said the region is already feeling pressure from the industry.

"I know we're getting inquiries. All of Northeast Florida is getting inquiries, and I don't think we want to be the donut hole and a donut of moratoriums that are starting to place around us," Dance said. 

He added that the pause would allow leaders to "calmly and thoughtfully evaluate our current policies and regulations."

Why does it matter?

Large data centers often require exorbitant amounts of power and cooling water, putting pressure on infrastructure and potentially fueling higher utility costs.

Palm Coast City Council member Ty Miller said he wants definitions that more clearly separate lower-impact facilities from "the big gigantic buildings that suck power and water."

The concern is becoming more common as AI expands. The computing power behind AI depends on energy-intensive data centers that consume vast amounts of electricity and water, raising concerns about unintended consequences, such as higher household costs.

Even the smaller Palm Coast project now under construction is expected to use up to 10 megawatts of electricity, which would place it among the area's largest power users, FlaglerLive reported.

Officials are also weighing how these facilities align with environmental considerations and future land use, along with questions about transmission infrastructure, noise, and hazardous materials management.

What are people saying?

Officials do not agree on how aggressively the city and county should respond.

Council member Charles Gambaro warned, "Anytime you use moratorium, it kills economic development," though he said he still supported a proactive rewrite of the land development code.

Others argued that a pause is justified.

Miller said, "I think there's a lot of validity to the fears in terms of water usage, power, with that industry as a whole."

Council member Theresa Pontieri pointed to surveillance concerns, saying, "If you look into what these things do, we're also talking about mass data storage and surveillance," and later added, "Why not take the opportunity to educate ourselves, make sure we're protecting the city and the county in the meantime?"

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