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.
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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.
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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.
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The draft ordinance proposes financial incentives for developers and homeowners, introducing a point-based system that awards reductions in building permit fees for incorporating environmentally friendly design features such as passive solar design, natural ventilation, and sustainable materials.
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The settlement has drawn opposition from the state Office of Public Counsel—which by law represents consumers—as well as several consumer advocacy groups.
Data centers have become the physical backbone of the AI revolution—but their growth comes with complex trade-offs. As they reshape landscapes, communities, and natural resources, the question isn’t just how big this boom will get—but what it will cost.
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Don’t blame AI or Trump. In a healthy energy market, rising demand would be met by new investment in reliable, affordable power. But instead, U.S. generation capacity is being throttled by artificial constraints.
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The Public Service Commission hearing is scheduled during the weeks of Oct. 6 to Oct. 10 and Oct. 13 to Oct. 17.
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Opposition is already mounting against the utility company’s petition that was filed in February outlining a base rate increase of $8.9 billion and could exceed $10 billion if additional solar and battery storage projects planned for 2028–2029 are approved.
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