South Florida has entered the data centre debate. In one of the first steps to regulate the construction of this asset class in the region, the Palm Beach County Commission has temporarily suspended the processing of data centre applications. This move came in response to opposition from residents, pending the adoption of appropriate zoning guidelines.
This week, commissioners voted 5 to 2 to freeze new data centre applications for unincorporated parts of Palm Beach County. The justification cited was the "zoning-in-progress" doctrine, which permits local administrations to suspend proposals while changes to zoning regulations are being evaluated. In a further vote, commissioners instructed county staff to draft a moratorium for new data centre projects.
The ordinance is expected to be finalised in the coming month. Subsequently, the moratorium is intended to remain in effect for up to one year or until new zoning regulations are adopted. Palm Beach County Mayor Sara Baxter, who initiated the moratorium, stated that this temporary suspension would allow ample time to assess the potential impacts of these facilities. Ms Baxter emphasised that developments must be considered with full transparency and a clear understanding of the long-term effects on infrastructure, resources, and residents.
Impact on existing projects
The suspension occurred as concerns mounted regarding an application scheduled to be brought before the Commission next week. Despite the votes, the development known as Central Park Commerce Center will be permitted to undergo review, as the application was submitted prior to the moratorium. The development, also known as Project Tango, involved the construction of a 3.7 million square foot data centre on 202 acres at 20125 State Road 80/Southern Boulevard in Loxahatchee, opposite Route 98, near the Arden residential community and Saddle View Elementary School.
This is a joint venture involving Atlanta-based developer TPA Group, infrastructure contractor Phillips, New York firm Ogden Cap Properties of the Milstein family, and Palm Beach Aggregates from Loxahatchee Groves.
Challenges for data centres in South Florida
Despite the rapid ascent of artificial intelligence companies such as OpenAI and Anthropic in recent years, South Florida has seen comparatively few data centre proposals. The region is densely populated, surrounded by the Atlantic Ocean and Everglades National Park, leaving little available land for large-scale projects. Hurricanes and year-round warm temperatures are also factors to consider. Despite these conditions, residents remain concerned. Maria Pesano, a resident of Jupiter, expressed that the majority of people do not want this data centre to be realised. She urged the Commission to vote no.
