State utility regulators must decide how to allocate the costs of generating and delivering power to data center operations, often referred to as “large load centers.” The issue is complex, and states are testing different approaches, each with its own advantages, limitations and risks.

Most of the time, the grid is running at only about half its capacity. This inefficiency drives up costs because building and maintaining the grid is expensive. But some researchers see an opportunity.

The SB 126 bill would require the Florida Public Service Commission to justify rate increases for investor-owned utilities and to consider affordability when making rate decisions. It was filed just weeks after the PSC approved a nearly $7 billion rate increase for FPL, affecting about 12 million customers and marking the largest rate hike in state history.

The Florida Public Service Commission signed off on an agreement, which FPL negotiated with several business groups and large energy users. The deal includes base-rate hikes of $945 million in 2026 and $705 million in 2027, with additional charges in 2028 and 2029 tied to solar and battery-storage projects.