By SKYLA CARTERAs Northwest Florida counties weigh proposals for large‑scale AI data centers and possible moratoriums, local officials and residents are examining how the projects could affect land use, water resources, and community development.
Artificial intelligence, or AI, data centers are large facilities built to train and operate AI systems, requiring significant amounts of electricity, water, and land. Water is commonly used to cool equipment. According to the Florida Water & Pollution Control Operators Association, the average data center can use up to 300,000 gallons of water per day, while some large‑scale facilities may use as much as 5 million gallons daily, depending on their size and cooling systems.
The growing demand for land, water, and electricity has also prompted concern among agricultural groups. The American Farm Bureau Federation has noted that farms and data centers rely on many of the same resources. Agriculture remains an important part of the local economy, with the U.S. Department of Agriculture’s 2022 Census of Agriculture reporting 629 farms in Holmes County and 400 farms in Washington County.
Florida is home to more than 100 data centers, according to industry reports, though Gov. Ron DeSantis has said the state does not currently have an operating hyperscale AI data center designed specifically to train and operate advanced artificial intelligence systems. Several large AI data center projects have been proposed around the state. In response, DeSantis signed Senate Bill 484 into law on May 7. The measure requires certain large‑load facilities, including some data centers, to pay utility‑related costs associated with their operations. It also preserves local government authority over zoning and development decisions, adds requirements for water‑use permits, and directs the state to study the long‑term effects data centers may have on Florida’s economy, infrastructure, and natural resources.
The issue has also been discussed at the local level. Local discussion about AI data centers began in Jackson County, where commissioners first addressed the issue during their May 12 meeting. During that discussion, officials referred to a proposed development area extending from the Compass Lake area to County Line Road. The identity of the company connected to the proposal has not been publicly disclosed.
Two weeks later, on May 26, commissioners voted to move forward with a moratorium on large‑scale data centers that is scheduled to take effect July 1. At their June 9 meeting, the Jackson County Board of County Commissioners held the first public hearing on a proposed ordinance that would impose a temporary moratorium on data center development within the county.
Before opening the public hearing for public comment, Commissioner Crutchfield made a motion, seconded by Commissioner Branch, to pursue a permanent ban on data centers rather than the proposed one‑year moratorium. County Attorney Clayton Knowles then read the title of the advertised moratorium ordinance before the board opened the hearing and received comments from residents.
Following public comment and discussion among commissioners, the board rescinded its original motion and directed Knowles and county staff to prepare revised ordinance language establishing a permanent ban on data centers, associated accessory structures, and affiliated businesses. The motion passed and included a proposed effective date of June 23 for the ordinance upon adoption.
During its June 2 meeting, the Holmes County Board of County Commissioners voted to schedule a public hearing on a proposed one‑year moratorium that would temporarily halt approvals for large‑scale data centers and other large‑load customer facilities in unincorporated areas of the county. Commissioners expressed concerns about potential data center development and said the moratorium would provide additional time to review possible regulations and land‑use considerations. At this time, no data center proposal has been submitted or publicly announced for Holmes County.
During the discussion, Commissioner Clint Erickson asked County Attorney Nate Nolin whether a more permanent solution addressing data centers could be prepared for consideration at the board’s next meeting. Nolin replied that such a proposal could be prepared within that timeframe.
Holmes County already has a conditional‑use review process in place through Ordinance 24‑01, adopted in 2024. The ordinance requires certain types of development to undergo public review before approval and provides an opportunity for public input. While Ordinance 24‑01 does not specifically address data centers, commissioners discussed whether additional amendments may be needed to ensure future data center proposals would be subject to specific standards and review requirements.
Washington County also has land‑use procedures that require additional review for certain types of development. According to county planning documents, some projects may be subject to a special‑exception process that includes public notice and review before approval can be considered. Whether a large‑scale data center would fall under those requirements has not been publicly discussed.
Washington County resident Nan Thompson, who lives in the Buckhorn Creek area, has spoken at meetings in Jackson and Holmes counties regarding AI data centers and has launched a petition opposing their development in Washington and Holmes counties. Thompson said research she has reviewed indicates that residents living within approximately five miles of some large‑scale data centers have reported concerns related to noise and light pollution. She said residents in communities including Buckhorn Creek, Tumble Creek, and Gilbert’s Mill are following the issue because of the proposed development area’s proximity to Washington County. Thompson said she also plans to address the Washington County Board of County Commissioners.
Washington County Administrator Andrew Fleener said county officials plan to address the issue at future meetings as discussions continue elsewhere in the region. The county’s next regular meeting is scheduled for June 18 at 9 a.m.
Holmes County will hold a series of public hearings related to a proposed ordinance that would ban data centers in unincorporated areas of the county. According to a public notice, the Holmes County Planning Commission will meet on June 23 at 5 p.m., followed by Board of County Commissioners hearings on July 7 at 6 p.m. and July 21 at 9 a.m. in the County Commission Chambers at 107 E. Virginia Ave. in Bonifay. The proposed ordinance would ban data centers, provide for conflicts and severability, and establish an effective date.
Jackson County’s public hearing on its proposed permanent ban is scheduled for June 23 at 9 a.m.
Staff Report 
Ali Moreland 
CAROL KENT SMITH