A developer wants to build a giant data center in Palm Beach — after lobbying for a tax break in Tallahassee

A recap of the third week of the Florida Legislature's 2026 session, plus a preview of week four.

Photo credit: Google

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Editor’s note: The 2026 session of the Florida Legislature is underway, so we have temporarily turned our weekly “Florida in Five” feature into a roundup of news, notes and bill movements from the session.

There’s something of a pitched battle playing out in Palm Beach County right now over “Project Tango,” a massive data center that, if approved, could cover nearly 2 million square feet and include close to a dozen server buildings.

The project, which faces intense opposition from nearby residents, is being developed by PBA Holdings. It’s a joint venture between Palm Beach Aggregates, a rock-mining company that is reportedly co-owned by sugar giant Florida Crystals, and Phillips Inc., a Tennessee-based infrastructure contractor formerly known as Phillips & Jordan.

PBA Holdings is also, records show, the company that lobbied a multimillion-dollar tax break for data centers through Florida’s Republican-controlled Legislature.

The tax break allows developers and operators to skip out on paying sales taxes on construction materials, computer servers and any other property used to build, furnish and run a very large data center — just like the one proposed in Project Tango. (It’s been given a code name to hide the identity of the ultimate user of the data center from the public.)

The tax break even allows data center operators to avoid paying taxes on all the electricity they consume.

The original tax break was signed into law by former Gov. Rick Scott in 2017, just a few months after PBA Holdings first proposed the project that would become Project Tango. It was initially supposed to expire after five years — in 2022 — but was extended for another five years under a law that Gov. Ron DeSantis signed in 2021.

Emails obtained after the 2021 legislative session show PBA Holdings was pushing behind the scenes to have the sales-tax exemption continued.

“Want to make sure you had this one pager that includes the requested language change from 2022 to 2027,” a lobbyist for PBA Holdings and Palm Beach Aggregates wrote in an email sent in the middle of the 2021 legislative session to the then-staff director of the Florida Senate’s Finance and Tax Committee.

The attached document explained that progress on the company’s proposed data center development had been stalled, in part, by the COVID-19 pandemic.

“The pandemic paused communications with potential users of Large-Scale Data Centers,” the document read. “In addition to the paused communication with potential users, the upgrade of certain kV lines that are necessary to provide reliable power to Data Center sites has been delayed.”

It sure looks like PBA Holdings intends to use the tax break to subsidize Project Tango. In 2018, shortly after Scott signed the original tax exemption into place, PBA Holdings cited the new tax break when it asked Palm Beach County to grant a time extension for the project.

PBA Holdings probably had help carrying the tax break through the Florida Capitol.

Records suggest that Florida Power & Light lobbied for the legislation, too. The monopoly utility giant has since promoted the tax break, calling it “Florida’s first official tool to attract data center investment.” And FPL has a binding power service agreement with PBA Holdings to sell electricity to the Project Tango data center, Stet News reported.

PBA Holdings has, at times, been a notable campaign contributor in Tallahassee. Campaign-finance records show, for instance, that the company donated $20,000 to the Republican Party of Florida and $10,000 each to the chairs of the budget committees in the House and Senate just before the legislative session in which lawmakers first passed the data center tax break.

But the company is also a big contributor locally in Palm Beach County.

Records show PBA Holdings donated $10,000 in November to Palm Beach County Mayor Sara Baxter. The donation came two weeks before Project Tango cleared the county’s Planning and Zoning Commission.

Then, in what Stet News called “an unusually swift move,” the project was immediately added to the agenda for a Palm Beach County Commission meeting less than a week later. And it was tucked into the county’s “consent agenda” — a section of the meeting that is typically reserved for routine, non-controversial bits of public business.

It might be worth noting here that the original sponsor of the data center tax break was then-state Rep. Joe Abruzzo — a Democrat from Wellington who was hired last summer as county administrator for Palm Beach County.

If the fast-tracking was an attempt to evade scrutiny, it didn’t work: Project Tango triggered such a backlash that county commissioners pulled the item from their agenda and postponed the vote until April.

That’s still plenty of time, at least as far as the tax break is concerned: DeSantis signed a bill last year that extended the data center tax break for yet another 10 years. The 2025 legislation also narrowed the break so that it is only available to truly hyperscale centers.

But there may be a new reason for urgency now. Growing concerns about the environmental impacts of data centers and societal impacts of artificial intelligence have led to calls in Tallahassee for stronger regulations on both — including from DeSantis, the same governor who has now twice signed off on a subsidy for data centers.

One bill filed in the Florida House this session could even ban data center tax incentives entirely.

It has yet to get a hearing.

Billtrack

Correction: An earlier version of this post mischaracterized Senate Bill 530. A provision authorizing the use of debit cards to purchase lottery tickets was removed from the bill before it was approved by a Senate committee.

In honor of the best show on TV, here’s a look at some of the bills on the move from the past week of session:

• House Bill 105: Empowers businesses to sue in order to stop local governments from enforcing local rules and ordinances. Passed the House Intergovernmental Affairs Subcommittee by a 12-0 vote. (vote sheet)

• Senate Bill 156: Mandates life sentences for anyone who inadvertently kills a police officer and is convicted of manslaughter. Passed the Florida Senate by a 31-4 vote. (vote sheet)

• Senate Bill 164: Grants fertilized eggs some of the same legal rights as living children and allows anyone who impregnates someone else to sue over the loss or termination of the pregnancy from the moment of conception. Passed by the Senate Civil and Criminal Justice Appropriations Committee by a 5-3 vote (vote sheet)

• House Bill 167: Makes it harder to sue the Mosaic Co. and other phosphate-mining firms over claims related to radiation exposure on redeveloped phosphate mines. Passed the Senate Rules Committee by a 22-0 vote. (vote sheet)

• House Bill 173: Forbids teenagers from accessing birth control, treatment for sexually transmitted infections and non-emergency mental health treatment without permission from a parent. Passed the House Health & Human Services Committee by a 19-7 vote. (vote sheet)

• House Bill 221: Allows employers to pay less than minimum wage to apprentices, interns and other workers in similar roles. Passed the House Industries & Professional Activities Subcommittee by an 11-6 vote. (vote sheet)

• Senate Bill 290: Makes it easier for sugar companies to sue environmental groups, news organizations and food-safety activists for defamation. Temporarily postponed by the Senate Rules Committee.

• Senate Bill 332: Gives attorneys for property owners and local governments more freedom to meet in secret to discuss potential settlements to claims under the state’s Bert Harris act. Passed the Senate Judiciary Committee by a 10-0 vote (vote sheet)

• House Bill 377: Exempts Phillip Morris’ IQOS heated tobacco products and any similar products from state cigarette and tobacco taxes. Passed the House Ways & Means Committee by 14-1 vote. (vote sheet)

• House Bill 399: Eliminates a key development restriction meant to slow suburban sprawl in Orlando and Miami. Passed the House Intergovernmental Affairs Subcommittee by a 10-3 vote. (vote sheet)

• House Bill 691: Makes it easier to develop residential subdivisions on farmland next to urbanized areas. Passed the House Intergovernmental Affairs Subcommittee by a 13-0 vote. (vote sheet)

• House Bill 693: Imposes new eligibility restrictions on Floridians seeking health insurance through Medicaid and KidsCare and additional paper requirements on Floridians seeking food assistance through the Supplemental Nutrition Assistance Program. Passed the House Health Care Facilities & Systems Subcommittee by a 12-4 vote. (vote sheet)

• Senate Bill 706: Takes the right to name Florida’s major airports away from the individual cities and counties that own them and changes the name of Palm Beach International Airport to “Donald J. Trump International Airport.” Passed the Senate Transportation Committee by a 9-0 vote (vote sheet)

• House Bill 919: Takes the right to name Florida’s major airports away from the individual cities and counties that own them and changes the name of Palm Beach International Airport to “Donald J. Trump International Airport.” Passed the House Economic Infrastructure Subcommittee by a 12-3 vote. (vote sheet)

• Senate Bill 948: Creates the “Starter Homes Act,” which would force local governments to allow higher-density housing on lots connected to public water and sewer systems and make it more difficult to suppress density through mechanisms such as building height limits, setback requirements, parking minimums and lot-size restrictions. Passed the Senate Community Affairs Committee by a 7-1 vote (vote sheet)

• House Bill 981: Requires the Department of Environmental Protection to prepare a plan to breach the Rodman Dam and restore the natural flow of the Ocklawaha River. Passed the House Budget Committee by a 28-0 vote. (vote sheet)

• House Bill 995: Makes it harder for teachers, clerks, bus drivers and most other public-sector workers to unionize. Passed the House Government Operations Subcommittee by a 12-5 vote. (vote sheet)

• Senate Bill 1038: Establishes rules for a state reserve fund with which to invest taxpayer money in cryptocurrency. Passed the Senate Banking and Insurance Committee by a 10-0 vote. (vote sheet)

• Senate Bill 1040: Creates the cryptocurrency reserve fund. (Passed the Senate Banking and Insurance Committee Passed the Senate Banking and Insurance Committee by a 10-0 vote. (vote sheet)

• House Bill 1071: Enables the State Board of Education to make public schools show students an anti-abortion cartoon as part of their health education curriculum, beginning in the sixth grade. Passed the House PreK-12 Budget Subcommittee by a 12-3 vote. (vote sheet)

• House Bill 1119: Forbids school districts from considering the literary or artistic merits of books that activists want banned from libraries. Passed the House Education & Employment Committee by a 16-5 vote. (vote sheet)

• House Bill 1139: Helps developers trying to stop a local government from raising impact fees by requiring that the local government pay the developer’s attorney fees if the developer wins a case in court. Passed the House Intergovernmental Affairs Subcommittee by a 12-0 vote. (vote sheet)

• House Bill 1279: Sets a 5 percent cap on the number of out-of-state students that the University of Florida and other top public universities can admit as part of their freshman classes. Passed the House Careers & Workforce Subcommittee by a 12-5 vote. (vote sheet)

• House Bill 1421: Orders agencies to study the feasibility of using state conversation lands for cattle grazing and to lease any lands deemed feasible to private cattle companies. Passed the House Natural Resources & Disasters Subcommittee by a 16-2 vote. (vote sheet)

• House Bill 1471: Empowers state authorities to designate and sanction “domestic terrorist organizations.” Passed the House Civil Justice & Claims Subcommittee by a 14-3 vote. (see votes)

• Senate Bill 1444: Strips cities and counties of the power to regulate everything from religious gatherings and church services to home playground equipment and private clubs. Passed the Senate Community Affairs Committee by 6-2 vote. (vote sheet)

• House Bill 1461: Establishes a regulatory framework authorizing the deployment of advanced nuclear reactors. Passed the House Economic Infrastructure Subcommittee by 15-0 vote. (vote sheet)

• Senate Bill 1512: Expands tax breaks that aerospace, defense and other companies can get through Space Florida. Passed the Senate Military and Veterans Affairs, Space and Domestic Security Committee by a 4-0 vote (vote sheet)

• Senate Bill 1628: Prevents communities from implementing policies meant to reduce greenhouse gas emissions and combat climate change, and eliminates local green energy policies that are already on the books. Passed the Senate Environment and Natural Resources Committee by a 5-3 vote. (vote sheet)

• Senate Bill 1756: Allows parents to ignore mandatory immunization requirements for public school students because they object for reasons of “conscience,” and lets pharmacies sell Ivermectin without a prescription — but with immunity from lawsuits over any negative health effects. Passed the Senate Health Policy Committee by a 6-4 vote. (vote sheet)

• House Bill 7009: Makes permanent a public-records exemption that allows the Public Service Commission to close portions of public meetings when discussing a utility company’s proprietary business information. Passed the House State Affairs Committee by a 24-1 vote (vote sheet)

The week ahead

Monday

• The Senate Governmental Oversight and Accountability Committee will hear Senate Bill 1296, which would make it harder for most teachers, clerks, bus drivers and most other public-sector workers to unionize. The meeting begins at 3:30 pm. (Contact committee members)

Tuesday

• The House Civil Justice & Claims Subcommittee will hear House Bill 1551, which would make it harder to sue gun manufacturer Sig Sauer in cases where someone has been injured or killed because a company-made pistol allegedly fired without anyone pulling the trigger. The meeting begins at 2:30 pm. (Contact committee members)

• The House Civil Justice & Claims Subcommittee will also hear House Bill 485, which would allow someone to obtain a domestic violence injunction against their spouse on the basis of “marriage fraud” — an allegation that they were deceived into marriage by a non-citizen in order to evade immigration law or obtain benefits. The bill would also require a court granting a marriage fraud injunction to immediately alert immigration authorities.

• The Senate Education PreK-12 Committee will hear Senate Bill 824, which would force local school districts to offer vacant land to charter school operators. The meeting begins at 3:30 pm. (Contact committee members)

Wednesday

• The Senate Commerce and Tourism Committee will hear Senate Bill 1236, which would prohibit companies receiving tax incentives, public grants or other subsidies from the state from voluntarily recognizing a new employee union or from agreeing to remain neutral in a union election. The meeting begins at 10:30 am. (Contact committee members)

• The Senate Banking and Insurance Committee will hear Senate Bill 838, which would allow auto lenders to charge “processing fees” when car buyers make loan payments by credit card or other electronic payment system. The meeting begins at 10:30 am. (Contact committee members)

• The Florida House of Representatives will hear House Bill 429, which would give law enforcement more ways to designate a criminal suspect as a member of a gang, including by citing the use of “gang-related language” on social media. The floor session begins at 4 pm. (Contact House members)

Note: The House notices committee meetings two days ahead of time, while the Senate notices them three days in advance. Click here to find the complete daily calendars in the Florida House of Representatives, and click here for the daily calendars for the Florida Senate.

Reading list

• Florida Republican targets local and state government unions at behest of anti-union group (Caring Class Revolt)

• Warned of Florida State Guard concerns, DeSantis administration fired whistleblower, records show (Orlando Sentinel) ($)

• House Republican who investigated Hope Florida seeks changes to the law (Miami Herald) ($)

• DeSantis’ DOGE finds ‘wasteful’ spending but no fraud (Tampa Bay Times) ($)

• Florida Republican says ‘American Dream is dying’ because minimum wage is too high (Orlando Weekly)

• Florida proposes teaching students about ‘the fall of Nicolas Maduro’ (Tampa Bay Times) ($)

• Florida emergency management agency must release communications with feds, court rules (Florida Phoenix)

• The ‘virtually impossible’ path for citizens’ ballot initiatives in Florida (The Florida Tributary)

• In Tampa Bay, a proposed cruise port reignites an old Florida battle (Tampa Bay Times) ($)