In short
Florida law requires a consumptive use permit (CUP) to withdraw most water from the ground or surface. For large-scale AI data centers, the state enacted SB 484 in 2026. The law takes effect July 1, 2026. It defines a large-scale data center as a facility at a single location with an anticipated monthly peak load of 50 megawatts or more. Under the new framework, a public hearing is mandatory for any large-scale data center CUP application. The water management district must require the use of reclaimed water when certain conditions are met. Large scale data center permit applications that seek 100,000 gallons per day or more must include a detailed water use breakdown and a water conservation plan. SB 484 enrolled text As of April 2026, the Southwest Florida Water Management District had not issued a water permit to any AI data center, according to a district spokesperson. Bay News 9 Two major proposed projects, in Fort Meade and Loxahatchee, show the hurdles developers face.
What is Florida’s existing water use permit law?
Florida requires anyone who uses water from a ground or surface source for a non-domestic purpose to obtain a consumptive use permit (CUP). The CUP is issued by the water management district (WMD) where the use happens. The governing law is Chapter 373 of the Florida Statutes. Fla. Stat. ch. 373
To get any CUP, an applicant must establish three things. The use must be a reasonable beneficial use. It must not interfere with any existing legal use of water. And it must be consistent with the public interest. Fla. Stat. § 373.223(1)
Reasonable-beneficial use means the use of water in such quantity as is necessary for economic and efficient utilization for a purpose and in a manner which is both reasonable and consistent with the public interest. Fla. Stat. § 373.019(16)
A CUP can last up to 20 years. The applicant must request that term and give reasonable assurance the conditions will be met over the full period. Fla. Stat. § 373.236
The CUP process has several general thresholds. If the application is for less than 100,000 gallons per day, the governing board or the department may consider the application and any objections thereto without a hearing. For 100,000 gallons per day or more, a hearing may be skipped only if no one objects and the governing board or the department, after proper investigation by its staff, may, at its discretion, approve the application without a hearing. Fla. Stat. § 373.229(4)
A new or renewed CUP that authorizes groundwater withdrawals of 100,000 gallons per day or more from a well with an inside diameter of at least 8 inches must include monitoring. The results must be reported to the WMD at least once a year. Fla. Stat. § 373.223(6)
A district may require the use of reclaimed water instead of some or all of the proposed groundwater or surface water withdrawal. It can do that if reclaimed water is available, environmentally, economically, and technically feasible, and of such quality and reliability as is necessary to the user. Fla. Stat. § 373.250(3)(c) Reclaimed water is treated wastewater that can be reused for non-drinking purposes like cooling or irrigation. No separate permit is needed just to use reclaimed water. Fla. Stat. § 373.019(17), Fla. Stat. § 373.250(3)(b)
The five water management districts
Five water management districts cover Florida. They are Northwest Florida, Suwannee River, St. Johns River, Southwest Florida (SWFWMD), and South Florida (SFWMD). Each has a governing board of at least nine members appointed by the governor and confirmed by the state senate. These districts have delegated authority to regulate consumptive water uses. The state DEP retains oversight but has largely delegated day to day permit administration to the districts. Florida DEP Water Management Districts, 2025 Handbook of Florida Water Regulation, Florida Bar analysis, Fla. Stat. § 373.016(5)
What does SB 484 change for large-scale data centers?
SB 484, enacted as Chapter 2026-65, Laws of Florida, takes effect on July 1, 2026. It adds a new layer of regulation for any large-scale data center seeking a consumptive use permit. SB 484 enrolled text The bill passed the Senate 37 to 0, the House 92 to 16, and final Senate concurrence 31 to 6 on February 26, March 11, and March 13, 2026. Governor Ron DeSantis signed it into law on May 7, 2026. Bill history, House page
The law defines a data center as a facility that mainly houses electronic equipment to process, store, and transmit digital information. It may be a standalone building or a part of a larger structure with environmental controls. SB 484, § 373.203(3) A large-scale data center is a data center at a single location with an anticipated monthly peak load of 50 megawatts or more. The peak load is measured as the highest average load over any 15 minute interval. Loads from multiple locations are not added together even if the same customer owns them, but all colocated customers at the same location are combined to meet the threshold. SB 484, § 373.203(4)
For these large-scale data centers, the new law adds several requirements beyond the general CUP rules.
Mandatory public hearing
The governing board or DEP may not approve a CUP application for a large-scale data center without holding a public hearing. This applies no matter how much water is requested. Under general law, small withdrawals may skip a hearing. SB 484 removes that option for large-scale data centers. SB 484, § 373.262(4)(b)
Enhanced application requirements for high water users
If a large-scale data center seeks at least an average daily flow of 100,000 gallons per day, the application must include extra information. It must list every water source and the amounts used for cooling, industrial processes, employee needs, and landscape irrigation, along with water losses. It also must include a water conservation plan. The plan must cover, at a minimum, recycling cooling water before discharge or disposal, a leak detection and repair program, water efficient fixtures, and an employee awareness and education program concerning water conservation. SB 484, § 373.262(4)(a)
Reclaimed water mandate
The WMD or DEP must require the use of reclaimed water for a large-scale data center’s allocation when five conditions are all met. The reclaimed water source must be available and permitted. Reclaimed water distribution lines must be available at the property boundary with enough capacity and quality. The applicant must be able to access the source. Using reclaimed water must be environmentally, economically, and technically feasible. And the use would not conflict with the requirements contained in the applicant’s surface water discharge permit, if applicable. SB 484, § 373.262(3) This goes beyond the general reclaimed water rule, which gives the district discretion. For large-scale data centers, it is mandatory when the conditions are satisfied.
Modification treated as a new application
Under general law, a permit holder can ask to modify an existing CUP. SB 484 changes that for large-scale data centers. Any modification proposed by a large-scale data center must be treated as a new initial application. The same rule applies to any modification involving water use of 100,000 gallons per day or more, even if the permit holder is not a large-scale data center. The full process starts over. For a large-scale data center, the new requirements include a mandatory hearing. SB 484, § 373.239(2) as amended, SB 484, § 373.262(4)(b)
Permit cannot issue if the use harms water resources or violates local zoning
The district or DEP may not issue a CUP to a large-scale data center if the proposed use would harm the water resources of the area. It also cannot issue the permit if the use is prohibited by applicable local government zoning regulations and comprehensive plan. SB 484, § 373.262(2)
What is the threshold for a large-scale data center in Florida?
A single location with an AI data center qualifies as a large-scale data center under SB 484 when its anticipated monthly peak load reaches 50 megawatts or more. The peak load is figured as the highest average electrical load over any 15 minute interval within a month. If a location has multiple customers colocated, their loads are added together. But if one customer has multiple sites, the loads at different locations are not added. SB 484, § 373.203(4)
How do the general CUP thresholds interact with SB 484?
Several thresholds matter for a large-scale data center CUP.
| Threshold | What it triggers |
|---|---|
| 50 MW monthly peak load | Qualifies as a large-scale data center, invokes SB 484 rules (mandatory hearing, reclaimed water mandate if feasible) |
| 100,000 gallons per day or more average daily flow | Enhanced application requirements under SB 484 (water source breakdown, conservation plan) |
| 100,000 gallons per day or more from an 8-inch+ well | Monitoring requirement under general law § 373.223(6) |
| 100,000 gallons per day or more generally | Public hearing normally required under general law § 373.229(4), but for large-scale data centers the hearing is mandatory regardless of volume |
A large-scale data center application will almost certainly exceed the 100,000 gallons per day mark, so the enhanced requirements will apply in most cases. Even if the requested amount is below that, the public hearing is still mandatory under SB 484.
What is the role of the water management districts now?
The five water management districts hold the primary authority to issue CUPs. Since late 2025, the state has moved to elevate review of AI data center water permits from staff to the district governing boards.
In November, Adam Blalock of the Florida Department of Environmental Protection sent a memo to all Florida water districts saying that AI data centers could put additional pressure on Florida’s already constrained aquifer, and recommending that all AI data center permits be made by the governing board, not staff, for transparency. Miami Herald
In December 2025, the SWFWMD governing board approved a policy delegating final action on permit applications to the executive director. The change passed without discussion as part of the consent agenda. SWFWMD Governing Board meeting minutes It is unclear whether the other four districts have adopted similar policies.
These board level reviews add political visibility and can extend the timeline. A developer now faces a public board hearing as a matter of policy, even before SB 484’s statutory hearing mandate takes effect.
What are the practical water supply hurdles in Florida?
The Southwest Florida Water Management District has not issued an AI data center water permit. Bay News 9 Beyond the statutory requirements, several real world conditions make permitting difficult.
Regional water deficits
The Upper Floridan Aquifer supplies drinking water to about 11 million people in Florida and parts of the Southeast. LkldNow In the region covered by the SWFWMD and the Central Florida Water Initiative, projections show a deficit of 96 million gallons per day within the next 10 to 15 years. Local governments already hold permits for a total of 1,064 million gallons per day, far more than the sustainable supply. A state rule will cap municipalities at their 2025 pumping levels once their current permits expire. LkldNow
In such an environment, any new large withdrawal faces intense scrutiny. A district must find that the use will not interfere with existing legal uses and is consistent with the public interest. That will be hard to show when the aquifer is already stressed.
Reclaimed water availability
SB 484 mandates reclaimed water use when feasible. But reclaimed water infrastructure is not everywhere. The developer must have distribution lines at the property boundary with enough capacity and quality. Even where reclaimed water exists, the environmental and economic feasibility must be shown. And the AI data center’s operations must be able to use reclaimed water without conflicting with a discharge permit.
In the Fort Meade case, the city does not have a reclaimed water system that can serve the proposed project. The developer would need to find another source or build new infrastructure, which adds cost and time.
Skepticism about closed loop cooling claims
AI data centers often propose closed-loop cooling systems that use much less water than once through systems. Developers are making very low water use claims. For example, Stonebridge’s Fort Meade project originally estimated 140,000 gallons per day, then revised that down to 50,000 gallons per day with a closed-loop system. Project Tango in Loxahatchee claims an estimated 5,000 gallons of water per day to cool its generators, relying on a closed-loop system that reuses water. Palm Beach Post, Palm Beach Post
State officials have publicly questioned these numbers. The Florida Commerce Secretary stated the Fort Meade water demand estimate appeared woefully underestimated. The Ledger If a district believes the developer’s water use numbers are too low, it can find that the applicant has not provided reasonable assurance the use will meet the three-prong test.
Public opposition and local zoning
Public hearings are mandatory. In both Fort Meade and Palm Beach County, organized citizen opposition has emerged. In Palm Beach County, petitions have gathered thousands of signatures and county commission votes have been postponed Florida Phoenix, Stet News, Palm Beach Post. In Fort Meade, a petition gathered hundreds of signatures and a city commission vote was delayed Spectrum News, WUSF. SB 484 also ties the CUP to local zoning compliance. If a county denies a zoning change or a comprehensive plan amendment, the water permit cannot issue.
How do the Fort Meade and Project Tango projects illustrate these hurdles?
Stonebridge / Fort Meade campus
The Stonebridge proposed campus sits on about 1,300 acres of former phosphate mine land in Fort Meade, Polk County. The full buildout would include up to 4.4 million square feet across eight buildings, a $2.6 billion investment, and 1.2 gigawatts of power from Duke Energy. The developer says it would use 50,000 gallons of water per day with a closed-loop cooling system. Florida Data Centers
The City of Fort Meade approved a development agreement and a tax incentive in April 2026. But the SWFWMD sent a letter stating the city cannot supply the water under its existing permit. A separate CUP from SWFWMD is required, and it must go through a public board hearing. As of mid April 2026, Stonebridge had not yet applied for the water permit. Tampa Bay Times Groundbreaking was targeted for late 2026, but that timeline is now uncertain.
Project Tango / Central Park Commerce Center
In Palm Beach County, the Project Tango site originally proposed 1.8 million square feet of AI data center space on about 202 acres next to FPL’s West County Energy Center. After public outcry, the developer scaled back to roughly 1 million square feet and claims water use of 5,000 gallons per day. A water treatment building is in the site plans. A rival application from TPA Group, filed in April 2026, proposes another 1.15 million square feet on 60 acres within the site. Stet News The county commission vote has been delayed twice, now set for July 15, 2026. An opposition petition has gathered almost 10,000 signatures. Palm Beach Post
Both projects show that even before a water permit is filed, developers face local political hurdles. They must convince skeptical water managers and the public that their water use estimates are credible and that they will not harm the aquifer.
What should a developer do to prepare for a Florida AI data center water permit?
Given the new legal framework and the practical environment, developers can take several concrete steps.
- Engage with the water management district early. Before filing, meet with district staff to understand the data requirements, the water availability in the specific basin, and the board’s expectations. SWFWMD, for instance, has its Water Use Permit page that outlines the process. SWFWMD Water Use Permit
- Build a credible water use model. The water conservation plan must be detailed and supported by engineering data. Use real equipment specifications to estimate cooling water needs, not placeholders. Expect the estimate to be challenged.
- Secure a reclaimed water supply. Determine if reclaimed water lines exist at the property boundary. If not, assess the feasibility and cost of extending lines or building a private reclaimed water treatment system. Having a reclaimed water plan improves the likelihood of meeting the mandatory use condition and may reduce groundwater withdrawal volumes.
- Prepare for a public hearing. Assume the governing board hearing will be well attended by opponents. Prepare testimony from water resource experts, an economic impact analysis, and an explanation of how the project meets the reasonable-beneficial use and public interest tests.
- Align with local land use approvals. The CUP cannot be issued if the project violates local zoning or the comprehensive plan. Get those approvals secured or at least on a path before applying for the CUP.
- Plan for a longer timeline. With board level review, public hearings, and the requirement that modifications be treated as new applications, the permit process will likely take many months. Build that into the project schedule and financing.
- Monitor other district actions. As of 2026, no AI data center water permit has been granted. Watch how the first applications, such as the Fort Meade filing, are processed. Outcomes will set precedents for what the districts will accept.
Key takeaways
- Florida has not yet issued a water permit for any AI data center. A new law effective July 1, 2026 will regulate large-scale data centers explicitly.
- A large-scale data center is one with a monthly peak load of 50 MW or more at a single location.
- The CUP application for a large-scale data center requires a public hearing in every case. If the daily withdrawal is 100,000 gallons or more, a detailed water source breakdown and a water conservation plan are also needed.
- The WMD must require the use of reclaimed water when it is available, feasible, and does not conflict with other permits.
- Modifications to an existing large-scale data center CUP are treated as new applications, restarting the hearing process.
- Regional water deficits in central Florida and intense public scrutiny make these permits difficult to obtain. Developers should engage the district early, provide credible water use data, and plan for a lengthy review.
Frequently asked questions
Q:What is a consumptive use permit in Florida?
A:A consumptive use permit (CUP) is the legal permission required to withdraw water from a ground or surface source in Florida for non-domestic purposes. It is issued by one of the five water management districts under Chapter 373, Florida Statutes.
Q:Who needs a CUP for an AI data center in Florida?
A:Any AI data center that plans to withdraw water from a well, a river, or a lake for cooling, sanitation, or other uses must obtain a CUP from the local water management district. Using reclaimed water alone does not require a separate permit. Fla. Stat. § 373.250(3)(b)
Q:What is a reasonable-beneficial use in Florida water law?
A:It means the use of water in such quantity as is necessary for economic and efficient utilization for a purpose and in a manner which is both reasonable and consistent with the public interest. Fla. Stat. § 373.019(16)
Q:How many water management districts are there in Florida?
A:There are five. They cover the northwest, Suwannee River, St. Johns River, southwest, and south Florida. Each has its own governing board and rules. UF/IFAS FE594
Q:What is the threshold for a large-scale data center under SB 484?
A:a single location, with a data center on site, that has an anticipated monthly peak load of 50 megawatts or more, calculated as the highest average load over a 15 minute interval. SB 484, § 373.203(4)
Q:Does SB 484 require a public hearing for every AI data center?
A:Yes, for any large-scale data center CUP application. No matter how little water is requested, a public hearing before the governing board or the department is mandatory. SB 484, § 373.262(4)(b)
Q:Can an AI data center avoid the 100,000 gallon per day enhanced requirements?
A:The enhanced requirements apply when the average daily flow reaches 100,000 gallons per day. A facility that uses less water may avoid the water source breakdown and conservation plan, but it still must meet the three-prong test and go through a public hearing. Most large-scale AI data centers will easily exceed that threshold.
Q:Has any AI data center received a water permit in Florida?
A:No. As of April 2026, the Southwest Florida Water Management District has not issued a CUP for an AI data center. Bay News 9
Q:What is reclaimed water and why does it matter?
A:Reclaimed water is treated wastewater that is safe for non-drinking uses like cooling, irrigation, and industrial processes. Florida law encourages its use to reduce demand on groundwater. SB 484 requires water management districts and the Department of Environmental Protection to condition large-scale data center consumptive use permits on the use of reclaimed water when a suitable reclaimed water supply source is available and permitted, reclaimed water distribution or supply lines are available at the property boundary in sufficient capacity and quality to serve the applicant’s needs, the applicant is capable of accessing the reclaimed water source through distribution or supply lines, the use of reclaimed water is environmentally, economically, and technically feasible, and the use would not conflict with the applicant’s surface water discharge permit if applicable. SB 484, § 373.262(3)
Q:How long does an AI data center CUP last in Florida?
A:Up to 20 years, if the applicant requests that term and provides reasonable assurance the permit conditions will be met for the full period. Fla. Stat. § 373.236
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Junde Liu, JD, LL.M. (Taxation) candidate at UF Law. Originally published on Compute Law Blog. This article is general information and does not constitute legal advice. Reading it does not create an attorney client relationship. The reader should not act on the basis of any content here without first consulting a licensed attorney in the relevant state. Last reviewed for accuracy May 23, 2026.