Palm Beach County Weighs Year-Long Data Center Moratorium

Palm Beach County commissioners are scheduled to vote on a proposed yearlong moratorium that would halt all large-scale data center development applications, making it the latest Florida jurisdiction to pause such projects while establishing regulatory frameworks.

The county's zoning commission advanced the moratorium proposal in early August, with a first reading set for late August and a final adoption hearing scheduled for September 24. If approved, the county will not accept or process applications for data centers with anticipated peak loads of 50 megawatts or more—enough to power 30,000 to 50,000 homes—during the moratorium period.

Why it matters

The proliferation of AI-driven hyperscale data centers has outpaced local land-use regulations across Florida. These facilities consume 5 million to 8 million gallons of water daily for cooling and generate industrial-scale noise and energy demands that differ fundamentally from traditional server farms. Without updated codes, counties lack the tools to evaluate environmental impacts, protect residential areas, or ensure developers bear infrastructure costs rather than ratepayers.

Florida's growing regulatory response

Palm Beach County would join more than a dozen Florida local governments that have enacted temporary bans, according to county staff analysis. Leon County implemented an 18-month moratorium, while Citrus, Clay, Holmes, Jackson, Nassau, Pasco, and Walton counties each adopted one-year pauses. Bay County's moratorium runs six months. Additional jurisdictions including Franklin, Flagler, Santa Rosa, Hernando, and Sarasota counties have also imposed temporary restrictions, according to independent tracking by Florida Data Centers.

Wakulla County took the most restrictive approach in June, passing an ordinance that prohibits data center permitting, construction, and operation countywide.

Project Tango rejection spurs action

The moratorium proposal follows commissioners' July rejection of Project Tango, a controversial data center planned for 200 acres of industrial land west of Loxahatchee. Commissioners cited incompatibility with surrounding residential areas, noise concerns, water usage questions, and outdated county regulations as reasons for denial.

PBA Holdings, the project owner, has appealed the decision under Florida's Land Use and Environmental Dispute Resolution Act, arguing the site is ideally located for a large-scale data center and that the rejection relied on unofficial criteria rather than existing code. Attorney Ethan Loeb contended in an August 5 letter that the commission's decision reflected public opposition rather than established rules.

Regulatory gaps and state framework

Assistant County Attorney Darren Leiser told the South Florida Sun Sentinel that Palm Beach County's land-development code lacks specific provisions for hyperscale AI data centers. The moratorium would provide time to develop requirements including increased landscape buffers, mandatory sound studies, and development agreements.

At the state level, Governor Ron DeSantis signed legislation in May creating Florida's first regulatory framework for large-scale data centers. The law requires facilities to fund their own grid connections to avoid burdening residents with higher utility bills and mandates the use of gray water rather than potable water for cooling systems.

Christina Reichert, senior attorney at environmental law organization Earthjustice, noted in a June letter to commissioners that hyperscale AI data centers differ fundamentally from traditional server farms in equipment, technology, and environmental impacts. "A traditional data center is like building a single-family home, while a hyperscale AI data center is like compressing multiple industrial sites onto a single plot of land," Reichert wrote.

Details of the proposed moratorium and regulatory developments were first reported by CBS12 News and the South Florida Sun Sentinel.