On May 8, 2026, Governor DeSantis signed a law imposing new regulations on data centers. These regulations include new water use permitting requirements for “large scale data centers” that begin July 1, 2026.
Data Centers and Water Use
Data centers are the backbone of cloud computing, artificial intelligence, and the digital economy. They host the information technology (IT) equipment required for on-site or cloud data storage and artificial intelligence (AI) computing. Electronic IT equipment generates heat as it operates. Data centers must offload this heat using many different technologies, otherwise elevated temperatures can lead to hardware malfunctions, efficiency reductions, and permanent hardware damage. Cooling methods that directly consume water are often the most effective. These water-cooling methods may require permits from the Florida Department of Environmental Protection (FDEP) or the water management districts.
Background on Water (Consumptive) Use Permits
Individuals and businesses must obtain a water (consumptive) use permit (WUP or CUP) before withdrawing surface water or groundwater. FDEP and the water management districts possess sole authority to issue these permits and impose conditions to ensure that water use is consistent with state water policy and not harmful to the water resources of the area. To obtain a permit, an applicant must demonstrate that the proposed use of water is a reasonable and efficient use of water for its intended purpose, will not interfere with any presently existing legal use of water, and is consistent with the public interest.
Applicants must identify the source of water, the quantity requested, the intended use of the water, and supporting information demonstrating that the proposed withdrawal will not cause unacceptable impacts to water resources or other users. The permits may include conditions related to conservation, monitoring, reporting, and other measures necessary to ensure that withdrawals remain within approved limits and do not harm water resources or other water users.
Key Takeaways from the New Law
Beginning July 1, 2026, individuals involved in constructing or operating data centers that anticipate monthly peak loads of 50 megawatts or more should be prepared to perform the following in addition to typical water use permitting criteria:
- Investigate local zoning and comprehensive plan regulation of data centers;
- Identify sensitive water resources near the proposed data center;
- Plan to use reclaimed water in lieu of all or a portion of a proposed use of surface water or groundwater;
- Identify all proposed water uses at the proposed data center;
- Develop a water conservation plan; and
- Prepare to address at a public meeting any issues related to water use for the proposed data center.
Other Regulatory Issues
In addition to water use issues, data centers should consider other environmental regulatory matters, such as:
- Navigating the air quality construction and operation permitting process associated with combustion engines providing energy for the data center;
- Obtaining wastewater permits associated with thermal discharges from the cooling system at the facility;
- Managing discarded E-waste and universal waste; and
- Construction and operation of Aboveground and Underground Storage Tanks that provide fuel for the combustion engines.
If you have any questions about the new law or need help navigating the permitting process for these environmental regulations, please contact West Gregory, Luna Phillips, Greg Munson, or Beth Ross.
Meet the Team
West Gregory is the former Director of Agricultural Water Policy at the Florida Department of Agriculture and Consumer Services and Deputy General Counsel at the Florida Department of Environmental Protection. Since 2006, he has practiced environmental law, including defending permitting decisions, drafting water use regulations, facilitating administrative rulemaking, implementing grant funding initiatives, and exchanging land use interests to facilitate infrastructure improvements.
Luna Phillips is a shareholder at the Gunster and leads the firm’s Environmental Law Team. She is a Florida Bar Board Certified Attorney and has been practicing environmental law in Florida for over 30 years. Prior to joining Gunster, Phillips was a senior attorney at the Florida Department of Environmental Protection and the South Florida Water Management District.
Greg Munson is a shareholder with the firm and represents clients before Florida’s executive branch agencies, the state’s water management districts, the Division of Administrative Hearings, the Florida governor and cabinet, EPA, and the Florida Legislature. He twice held senior positions at the Florida Department of Environmental Protection. Beginning in 2011, Greg was the deputy secretary for water policy and ecosystem restoration.
Elizabeth Ross is an of counsel shareholder at the Gunster Law Firm and has practiced environmental law in Florida for over 30 years. Prior to joining Gunster, Ross was a senior specialist attorney at South Florida Water Management District for the water supply program.
YES! PLEASE SIGN ME UP TO RECEIVE EMAIL ALERTS FROM OTHER GUNSTER PRACTICE AREAS.
Gunster. Florida's Law Firm for Leaders.
As a full-service law firm, Gunster provides legal counsel to leading organizations and individuals from its 13 offices statewide. Established in 1925, the firm has expanded, diversified, and evolved, but always with a singular focus: Florida and its clients’ stake in it. A magnet for business-savvy attorneys who embrace collaboration for the greatest advantage of clients, Gunster’s growth has not been at the expense of personalized service but because of it. The firm serves clients from its offices in Boca Raton, Coral Gables, Fort Lauderdale, Jacksonville, Miami, Naples, Orlando, Palm Beach, Stuart, Tallahassee, Tampa, Vero Beach, and its headquarters in West Palm Beach. With more than 320 attorneys and consultants and 300 committed support staff, Gunster is ranked among the top 200 largest law firms by the National Law Journal and has been recognized as one of the Top 100 Diverse Law Firms by Law360. More information about its practices, industries, offices, and news is available at www.gunster.com.
