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Public urges Panama City to consider a time‑limited moratorium on AI data centers

July 11, 2026 | Panama City, Bay County, Florida


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Public urges Panama City to consider a time‑limited moratorium on AI data centers
A member of the public raised concerns about the water and electrical demands of proposed AI data centers and asked the commission to consider a six‑month moratorium similar to one adopted by Bay County for structures above a low‑megawatt threshold.

The commenter said the county planned a ban on structures "more than 5 megawatts" and that the state threshold is "50 megawatts" for ultra AI facilities; he urged Panama City to research protections that would prevent "AI data center abuse." "They are, very lethal and very threatening to communities' water and also electricity," the commenter said.

Commissioners and staff discussed options. One commissioner said adopting the county moratorium language where possible would save time; a staff member cautioned that an outright, indefinite ban is legally risky and likely to be litigated. "The problem with an outright ban...is that some company that has more money than the state of Florida is gonna come in and sue us," the staff member said, and recommended a time‑limited moratorium to allow research and zoning updates.

Speakers also cited technical infrastructure: a participant noted a paper-mill site and wastewater plant that once had a 40‑megawatt connection and substantial water-handling capacity, suggesting some brownfield sites may be technically suited for data uses if the city chooses to regulate placement and conditions.

Next steps: The item was placed on the next commission agenda for Tuesday. A commissioner indicated willingness to introduce a moratorium motion for the commission to consider at that meeting.

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