Does Florida law protect ratepayers from higher electric bills related to data centers? In Florida's governor's race, this question has become a point of contention.
Experts say state law does not promise that result.
What's happening?
WLRN teamed up with PolitiFact to investigate a claim by Republican Party frontrunner U.S. Rep. Byron Donalds, who said SB 484 "ensures that utility rates will not go up due to data centers."
This claim is reportedly "half true." As WLRN noted, Florida law requires utility companies to "reasonably ensure" certain large data centers cover the cost of service.
However, the Florida Public Service Commission is responsible for setting the parameters and enforcing pricing plans. Roughly 75% of Florida's population would fall under their jurisdiction. Rural and municipal utilities, which serve the other 25%, are also not beholden to this state rule.
The statute also leaves fuel costs untouched, meaning utilities can still pass those increases on to customers if overall electricity demand linked to data centers climbs.
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Why does it matter?
More than 100 data centers already operate in Florida, but no hyperscale artificial intelligence facility has opened there yet. Donalds has openly supported data center development, while leading Democrat David Jolly has advocated for a moratorium.
Artificial intelligence is becoming increasingly tied to the energy grid.
On one hand, AI tools may help utilities forecast demand, reduce waste, and better integrate cleaner energy sources. On the other hand, the facilities that power AI can require large amounts of electricity and water, while also raising concerns about security, misuse, and unintended economic fallout, including higher utility costs.
What's being done?
The next step belongs to Florida's Public Service Commission, which must convert the statute into specific pricing rules. By Oct. 1, the affected companies must file plans for approval that comply with the law.
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Gates McGavick, Donalds' campaign communications director, emphasized that the commission must "ensure data centers pay their own cost of service," per WLRN. "We expect municipal utilities and co-ops to follow suit," he added.
Mark McNees, a Florida State University professor who researches the impacts of data centers on consumers, pushed back on what he viewed as an overstatement, telling WLRN: "Saying rates 'will not' go up because of [the law] claims an outcome the statute does not deliver."
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