Florida is preparing for an increase in data center development as demand for digital services grows. In response, Florida Power & Light Company (FPL) has implemented new customer protections and rate structures designed to manage the impact of these facilities on existing customers.
FPL President Scott Bores explained that recent changes to FPL’s rates were not driven by data centers but were necessary because the company’s previous rate agreement was ending. “FPL went through the rate case process because our earlier rate agreement was due to conclude at the end of 2025 and reliably serving our customers takes continued investment. Our approved agreement enables us to continue to make smart investments to reliably power Florida’s growth while keeping customer bills low – well below the national average,” Bores said.
He clarified that large-scale data centers are not yet present in Florida, but he expects them soon due to favorable business conditions and reliable service. “At FPL, it is our job and our legal obligation to deliver electricity to any and all customers who move into our service area. That means we must be proactive and ready. And it’s why, as part of our rate case, we created special rates that apply to all large load customers, including data centers. These rates are designed to shield our existing customers from subsidizing these large load projects,” Bores stated.
Bores noted that in other states, rapid data center growth has sometimes led to higher residential electric bills. He said FPL studied those cases closely: “We carefully studied utilities in states that have seen significant data center growth so we could learn from their experience. That was the driving force behind our new large load rates, which are the most thoughtful and customer-protective in the nation.”
The newly established rates include consumer protections such as an Incremental Generation Charge (IGC), requiring large load customers like data centers to pay for all costs associated with building new power generation specifically for their use. The intention is for “the cost-causer (in this case, the data center) [to] foot the bill – not the general body of customers,” according to Bores.
Data centers will also pay a minimum monthly charge based on their contracted power usage—even if they use less—through what FPL calls a take-or-pay demand charge. “The minimum take-or-pay demand charge ensures the data center pays for that reserved capacity – even if they don’t end up needing all of it,” Bores said.
Additional measures require prospective data centers to fund engineering studies, meet strict collateral requirements based on creditworthiness, commit to a minimum 20-year contract term from when service begins, and agree to early exit fees if they leave before fulfilling their commitment.
“All these requirements combine to make up the strictest consumer protections in America as it relates to data centers. And they ensure that the projects that do move forward are only the best ones from the most mature and credit-worthy companies that intend to stay in Florida, providing tax benefits for communities and jobs for many years,” Bores concluded.
