St. Petersburg mayoral candidate Charlie Crist is proposing a one-year moratorium on data centers in the city, at minimum.
The former Governor announced the policy proposal Saturday morning, in a video posted to his social media channels. Crist attributed the decision, and its timing, to a proposal moving through City Council to raise utility rates.
“You’ve heard a lot about utility rates going up this week, and that really got me to thinking about these data centers. It’s a controversial issue, and if data centers come here, then those utility fees are probably going to go even higher,” Crist said. “That’s bad. You know, affordability is the biggest issue. If I win this office, as your Mayor of St. Petersburg, one of the first things I’m going to do is put at least a one-year moratorium against data centers.”
City Council on Thursday gave preliminary approval for rate increases of 7.5% for potable water, 6.5% for wastewater, 9.75% for reclaimed water, 8.5% for stormwater and 6% for sanitation. The issue heads next to the City Council meeting on Aug. 27 for final approval.
Mayoral candidate Brandi Gabbard was among those who voted in favor, and she posted a video to her Facebook page explaining the rationale for support, including a reminder to residents that the increase will not add staff or services, but is needed to keep pace with inflation. The current rate of inflation is 3.4%. The issue received pushback from Crist, lamenting on social media that “You pay more. You get the same.”
While the data center issue does not directly affect utility rates, they can use as much as 5 million gallons of water every day, the equivalent of more than 16,000 average U.S. households, according to Consumer Reports, which cited Environmental Protection Agency estimates. The demand can drive water utility rates higher, and they also increase demand on the energy grid, which could further add to affordability concerns.
Rumors began circulating earlier this year that a data center was under consideration at Derby Lane, on Gandy Blvd. in northeast St. Pete. While Pinellas County Commissioner Kathleen Peters later confirmed that only an informal inquiry had been made, it raised concerns that St. Pete could join the countless other cities across the nation in dealing with the impacts of large scale data centers.
Crist is not the first Pinellas official to reach for a pause. Pinellas Park’s City Council voted unanimously Aug. 11 to impose its own one-year moratorium on data center development, freezing a proposed American Tower facility while the city rewrites its Land Development Code and works with a Forward Pinellas countywide policy group.
It is an especially timely concern considering a statewide law is now in effect regulating AI data centers. While that law (SB 484) requires companies to foot the bill for their own utilities, and blocks utilities from passing increased costs onto other ratepayers, it was largely criticized for being watered down, and fears persist about potential cost increases.
“Your water bill is going up. Your electric bill is going up. Families in St. Pete shouldn’t have to compete with a warehouse full of servers for either one,” Crist wrote on Facebook along with his video. “And right now our city doesn’t have a single rule on the books about where these belong or how they get reviewed. Not one.”
In addition to an at least one year moratorium, Crist is calling on a study looking at water, power, and traffic impacts, and then to “write rules that protect neighborhoods.”
“I’m not against technology. I’m against building something this big before we know what it costs the people who live here,” he continued.
Crist’s announcement comes just three days before the Primary Election, on Tuesday. Early voting has been underway since last weekend, and runs through Sunday.
Crist is the leading candidate in the race, according to polls, followed by incumbent Mayor Ken Welch and Gabbard. Former St. Pete Fire Chief Jim Large has consistently polled in fourth place.