Understanding Data Center Development in Florida

What is FDISA?

The Florida Digital Infrastructure and Security Alliance is a Florida-based trade association representing companies and experts across technology, energy, water and infrastructure. FDISA advocates for responsible digital infrastructure policy and serves as an evidence-based resource for communities evaluating data center proposals.

Why should a community consider data center development?

Communities should evaluate data centers the way they evaluate any major economic development proposal, weighing benefits, impacts and fit with the community's long-term vision, and every project should meet rigorous standards for water use, traffic, noise, land use and public safety. Well-planned projects can expand the local tax base, supporting schools, infrastructure and other community services, and depending on the size and design of the project, they can also expand employment, from skilled construction work during the build to long-term technical and facilities roles once operational. This infrastructure also supports healthcare, public safety, emerging technologies and national security, helping protect the state's position as a destination for business investment and economic growth.

How much water and energy do data centers use?

Data center technology has advanced significantly in recent years, and newer cooling designs can use dramatically less water than older ones, with facilities becoming more efficient in how they use both water and energy. Some operators have cut water use per unit of energy by nearly 90% compared with early-generation facilities, with further improvements committed in the years ahead, and some are moving toward closed-loop cooling systems that eliminate evaporative water use entirely. That's why it's important to understand the specific technology being proposed rather than assume every data center operates the same way. Florida's water management and environmental permitting system requires review of water withdrawals and discharges before a project is approved.

What protections does Florida law provide for communities and ratepayers?

Florida's SB 484, effective July 1, 2026, establishes a statewide framework addressing several common community concerns. The law preserves local control over land-use and zoning decisions. Ratepayers are protected from subsidizing the infrastructure needed to serve new facilities, and water-intensive proposals can be required to use reclaimed water. Utilities also conduct extensive planning before connecting large new electric loads to the grid.

Who decides whether a project moves forward?

Local governments retain zoning and permitting authority, and data center projects go through the same land-use, environmental and permitting review as other major commercial and industrial development, built on privately acquired land rather than through eminent domain. Every proposal is evaluated on its own merits.

What economic impact do data centers have?

Nationally, the data center industry supported an estimated 5.5 million direct, indirect and induced jobs, contributing about $927 billion to U.S. GDP and $204.4 billion in federal, state and local tax revenue, according to the Data Center Coalition's 2026 report. At the local level, individual large-scale facilities have generated $20 million to $30 million or more annually in property tax revenue, funding priorities like schools and emergency services in the counties that host them, according to a 2025 municipal revenue analysis by Civic IQ. Local impact on jobs, tax base and infrastructure investment varies by project, which is why communities should request project-specific figures before deciding.

How are noise, traffic and construction impacts managed?

These are standard parts of local permitting review. Best practices include traffic impact studies, designated truck routes away from schools and neighborhoods, construction-hour limits, sound barriers, and ongoing communication between developers and local officials. Communities can require these commitments as a condition of approval and hold developers accountable throughout construction.

What role does FDISA play in a community's decision?

FDISA's role is to provide evidence-based project-specific information so communities can evaluate proposals on their merits. FDISA does not advocate for a particular outcome in any single community's decision.