Florida Construction News staff writer
Data centers have been popping up across the United States, and Florida is at the forefront of this boom. There are more than a hundred facilities, with more potentially on the way. That said, the potential power price surges associated with the increase in data center construction have sparked debate and demand for consumer protection.
Hyperscale data center construction in Florida
Florida’s data center construction has boomed in recent years. Its market size was estimated at $762.41 million in 2024 and is projected to hit $1,165.04 million by 2032. This entails a compound annual growth rate of 6.43% from 2026 to 2032.
There were many benefits to this spike in data center construction. For one, it helped support the state’s overall digital economy. Its infrastructure investment has supported construction employment across 30 states, including Florida, over the past year.
Gauging potential Florida data center power demand in 2026
However, it would be difficult to ignore the many downsides of accommodating data center construction. One that has drawn attention from many locals is the prospect that the facilities would spur a resurgence in power demand. Residential homes across the state would have to pay the price on top of already high expenses.
The timing for the state’s verdict on whether developers must pay the full cost of grid upgrades comes at the height of the data centers establishing themselves in Florida. Data center power demand is projected to utilize up to 15% of total U.S. electricity by 2030. Average residential electricity rates rose 6% last year, more than twice the inflation rate.
Interestingly, several states, such as Nebraska and New Mexico, actually saw their bills decrease despite the establishment of data centers and industrial facilities. Meanwhile, households in the Southeast continued to see their prices rise.
Collision with Florida’s SB 484 data center law
Florida’s governor signed a new state law, SB 484. Set to take effect on July 1, 2026, it essentially prohibits utilities from shifting infrastructure costs to residential ratepayers. While it doesn’t reduce costs, it does restrict cost shifting.
Duke Energy is the first utility to face Florida regulators over potential noncompliance, with 540 megawatts of active data center projects in Fort Meade and Fort Pierce. The company is scheduled to defend its proposal for how regular customers and data centers will pay at hearings on August 25 and 26.
Reevaluating data center infrastructure costs in Florida
It’s uncertain whether Florida can compete with other big data center states like Virginia under the new cost structure. Companies in that region are already taking measures to mitigate the potential utility increases by focusing on clean energy.
Sustainability is also at the forefront of the industry to combat the emissions impact of data centers. Microsoft recently built two new data centers in Virginia with a 35% reduction in carbon footprint by using wood instead of steel and concrete.
With SB 484 requiring data centers to cover full infrastructure costs, contractors bidding on these projects face intense pressure to reduce operational expenses and prevent delays. Best practices such as identifying underground and overhead obstacles before extensive excavation and optimizing equipment efficiency in advance are becoming vital.
Coordinating the data center permitting with Florida’s local authority should also require more attention. Local and state officials are already being called on to include clean power and emissions considerations in comprehensive planning and permitting. These may affect the total infrastructure costs in the long run.
Monitor the data center industry’s next move
While certain companies are still lobbying their case, tech, energy and construction companies will have to practice more mindful planning to comply with the new data center regulations. Further hearings will reveal how the rest of the state will fare in the current climate.
