Subject:
Title
Ordinance Amending Chapter 102, Article IV, Division 3 of the Brevard County Code to Make Data Centers Ineligible for Economic Development Ad Valorem Tax Exemptions.
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Fiscal Impact:
From a tax revenue perspective, the proposed ordinance will secure immediate, unabated real property and tangible personal property tax revenues if a data center chooses to locate in Brevard without tax incentives. The corollary is that the lack of incentives may cause a developer to locate in another Florida county or state, and Brevard County will receive no new ad valorem and tangible personal property tax revenues from the project.
Dept/Office:
County Attorney’s Office
Requested Action:
Recommendation
It is requested that the Board of County Commissioners hold a public hearing and consider adopting an ordinance amending Chapter 102, Article IV, Division 3 of the Brevard County Code to make data centers ineligible for economic development ad valorem tax exemptions.
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Summary Explanation and Background:
Currently, data centers are eligible for economic development tax exemptions. In fact, in accordance with state law, data centers are eligible for an exemption of up to twenty (20) years, while all other businesses are limited to only ten (10) years. Section 196.1995(5), Florida Statutes.
The Brevard County economic development tax exemption program does not identify any specific businesses or industries that are ineligible for consideration. The only ineligible businesses are those “in violation of any federal, state or local law or regulation governing environmental matters….” Section 102-187(d), Brevard County Code of Ordinances.
At its April 7, 2026 regular meeting, the Board of County Commissioners approved legislative intent and permission to advertise an ordinance amending Chapter 102, Article IV, Division 3 of the Brevard County Code to make data centers ineligible for economic development ad valorem tax exemptions. The agenda report requesting legislative intent stated:
The County’s incentive program is designed to attract and retain industries that provide substantial economic benefit, with particular emphasis on high-wage job creation, workforce participation, and long-term return on public investment. While data centers often involve significant capital investment, they typically generate a limited number of permanent jobs once operational. As a result, the cost per job created is comparatively high relative to other targeted industries.
Beyond employment considerations, data centers can place notable demands on public infrastructure. These facilities require substantial and continuous electrical capacity, may utilize significant water resources for cooling, and often occupy large parcels of land while generating limited secondary economic activity. This can create opportunity costs when compared to alternative development types that produce broader and more sustained economic impacts.
Nationally, a growing number of jurisdictions are reevaluating the use of public incentives for data centers. Local governments in Northern Virginia, home to one of the largest concentrations of data centers in the world, have initiated reviews of land use impacts, infrastructure strain, and incentive policies.
States such as Georgia and Arizona have also revisited or modified their incentive frameworks in response to concerns about energy consumption, environmental impacts, and long-term economic return. In some cases, local governments have paused approvals or implemented stricter standards to better assess community impacts.
The proposed ordinance provides a definition for the term “data center” which is drawn from federal and state law. It further provides that data centers are ineligible for the economic development ad valorem tax exemption program.
Clerk to the Board Instructions:
Upon approval by the Board, execution by the Chair, and attestation by the Clerk, file the ordinance with the Department of State as required by law within the 10-day deadline; provide a copy of the ordinance to Lynda Weatherman, President and CEO of the Economic Development Commission for Florida’s Space Coast; and provide a copy of the ordinance with filing information to Municode for codification.