Large-Scale Data Centers: Balancing the Need for Technological Growth with Smart Planning

By Jake Phillips '27

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Large-scale data centers have become one of the most controversial topics in the news today. It is difficult to read the news without encountering an article discussing the latest proposed data center or a new law aimed at regulating some aspect of data center development. Depending on the region and competing policy priorities, some laws are in favor of data centers, and others are adamantly opposed. (1)

This article argues that Florida should adopt a more uniform approval process for large-scale data centers, one that supports technological growth while addressing environmental and community concerns.

What is a Large-scale Data Center? 

Before examining the legal debate, it is important to define what constitutes a large-scale data center. Data centers have long existed in communities. With the growing reliance on technology, the need to build larger data centers with increased capacity has evolved into the so-called “large-scale data centers.” Large-scale data centers tend to have approximately 10,000 square feet and contain 5,000 servers or more running on high-speed networks. Traditional data centers are smaller with more centralized facilities. (2) Senate Bill 484, which was signed into law on May 7, 2026, defines large-scale data centers as those with a monthly peak load of 50 megawatts or more. (3)

Recent Developments and Laws Regarding Large-Scale Data Centers 

Large-scale data centers present both significant benefits and significant challenges. On one hand, data centers provide a community or region with much-needed reliable high-speed technology to support and fuel economic growth. (4) Data centers are large and can provide long-term jobs as well as temporary construction jobs for a community. (5) On the other hand, concerns surrounding data centers include excessive water usage, noise, safety, and increased electricity costs for surrounding communities. (6)

Local governments and states have responded with varying laws aimed at regulating aspects of concern to their communities. Fifteen states have proposed moratoriums on data centers, while the New York Governor signed an executive order establishing a one-year moratorium on new data centers. (7)

In contrast, states like Kansas have passed laws providing tax incentives to encourage developers of data centers to come to their state and build. The White House has issued three executive orders to support data centers. (8)

In Florida, Senate Bill 484 was passed by the Florida Legislature and signed into law by Governor DeSantis in May 2026. (9) It outlines a framework that balances the expansion of data centers with ratepayer protections and community oversight. It limits energy utilities from moving expensive data center electrical costs onto ratepayers such as residential and small-business customers. Senate Bill 484 mandates that the centers pay their full-service costs, relieving the public of financial liability. This bill also bans utility service to facilities controlled by foreign countries and requires public disclosure of records for development deals once exemption windows close. (10) Communities can enforce stricter environmental standards, require reclaimed water usage, and deny data center construction via this bill’s preservation of municipal authority on zoning, permitting, and land use. (11)

Project Tango Denied 

One recent example that illustrates these competing interests is the Palm Beach County Commission’s vote to deny construction of Project Tango, a large-scale data center that was proposed to be built in Loxahatchee, Florida. (12) On July 15, 2026, after a 12-hour public meeting, the Commission voted to deny the project by a 5-1 vote, responding to widespread public opposition citing concerns over water usage, energy costs, and excessive noise. (13) The surrounding communities organized an opposition campaign advocating for the denial of the project. Project Tango is an example of the various environmental issues that communities are grappling with as they decide whether data centers should be allowed within their communities. (14) While Project Tango was denied without prejudice, meaning it can revise its proposal and apply again, this initial loss set the tone regarding the difficulty in overcoming permitting obstacles to build and approve data centers in Florida.

A Path Forward

With the patchwork of laws and regulations emerging to address data centers, a more uniform permitting process would help manage the various environmental concerns. This idea is not new, and there is a possible template that already exists in Florida law that may serve as a starting point for data center permitting.

In Florida, large power plants that generate 75 megawatts or more are regulated under the State’s Power Plant Siting Act (PPSA). The PPSA is found in sections 403.501-.518 of the Florida Statutes and provides a centralized program to approve power plants. Its comprehensive permitting process addresses all aspects of a new power plant and replaces all local and state permits. The PPSA has worked for decades to provide a comprehensive review of the effects of power plants before a neutral Administrative Law Judge (ALJ) within the Division of Administrative Hearings (DOAH). (15)

The process is set up to allow all local and state agencies with jurisdiction over the power plant the ability to participate and review issues in unison. Third parties and stakeholders can also participate and raise their concerns. The approval or “certification” issued at the end of the process addresses environmental permitting, land use and zoning, and property interests. Most importantly, the PPSA certification process helps avoid a piecemeal approach that could result from obtaining each permit individually. (16) While the PPSA is a Florida-only law and does not address federal permits, it can serve as a template in Florida for the overall approval process of data centers, where local governments and state agencies can work together to determine whether a proposed data center in the state can be approved.

A uniform and comprehensive approach to reviewing and assessing the environmental impacts of data centers could also provide assurances to the public and surrounding communities that each data center, wherever it may be located, is being evaluated under the same rigorous criteria consistently.

The public’s growing reliance on advanced technology and AI shows no signs of slowing, making the need for thoughtful data center regulation increasingly urgent in Florida. Establishing a consistent permitting process now would better protect both technological innovation and Florida’s environmental resources in the years ahead. A consistent and robust permitting process would allow Florida to accommodate the inevitable growth of technology while ensuring that its limited natural resources, such as water and energy, are preserved and managed thoughtfully.

Endnotes

1. Kathryn Kline Tyndall et al., Key Considerations for Data Center Development (Washington, DC: Bipartisan Policy Center, July 2026).

2. Fortinet, Inc., “Hyperscale Data Centers: The Backbone of Digital Transformation” (2026).

3. Fla. SB 484, 2026 Leg., Reg. Sess. (Fla. 2026).

4. Tyndall et al., Key Considerations for Data Center Development.

5. Ibid.

6. WPTV, “AI Data Centers Spark Noise, Environmental Concerns as South Florida Communities Weigh Moratoriums,” August 4, 2026.

7. Tyndall et al., Key Considerations for Data Center Development.

8. Ibid.

9. Executive Office of Governor Ron DeSantis, “Governor Ron DeSantis Signs Law to Protect Floridians from Subsidizing Data Centers,” press release, May 7, 2026; Fla. SB 484, 2026 Leg., Reg. Sess. (Fla. 2026).

10. Fla. SB 484.

11. Fla. SB 484; Holland & Knight, “Proposed Florida Legislation Creates New Regulatory Framework for Hyperscale Data Centers,” Holland & Knight Insights, February 5, 2026.

12. Wilkine Brutus, “‘Not Compatible’: Palm Beach County Rejects Controversial Project Tango AI Data Center,” WLRN Public Media, July 16, 2026.

13. Ibid.

14. Florida Data Center Tracker, “Palm Beach County Data Center Risk Report,” 2026.

15. Florida Power Plant Siting Act, Fla. Stat. §§ 403.501–403.518 (2025).

16. Ibid.