Data centers are coming to South Florida. Here's what that means for your property
Four data center projects are underway across South Florida, including two in Miami-Dade County and one massive facility proposed for Palm Beach County. A fifth smaller data center will anchor a new office complex in South Miami-Dade. The surge reflects national demand: more than 1,500 data centers are in various stages of development across the U.S., according to Pew Research Center.
Data centers are industrial facilities housing thousands of computers that power cloud services and artificial intelligence systems. They look similar to warehouse buildings but operate continuously with heavy cooling systems.
What's being built where
Iron Mountain is constructing a 150,000-square-foot data center in Westview, an unincorporated area of Northeast Miami-Dade. The facility broke ground in February 2025 after years of planning. Iron Mountain says it will bring 30 jobs to the area.
Metrobloks is building a 112,900-square-foot data center on the edge of the Everglades in unincorporated Miami-Dade, with completion expected later this year.
Project Tango proposes a million-square-foot data center in Palm Beach County's Arden community, 35 miles west of Mar-a-Lago. The project has stalled as neighbors pushed back and the developer seeks rezoning approval.
ReadySetFundGrow's "Fishbowl" will be South Miami-Dade's first data center, built as part of a larger office complex on South Dixie Highway.
Why they're coming now
The pandemic and generative AI rollout have driven demand for computing power. Joshua Forman, an attorney at Greenberg Traurig who represents data center developers, said these facilities are "the backbone for the internet."
Across Florida, 120 data centers currently operate, with eight more planned. Nationally, vacancy rates at existing facilities hover around 3 percent, signaling strong investor interest.
The zoning question
In Miami-Dade, data centers are classified as "telecommunications hubs" and are permitted in industrial zones. That means developers don't need rezoning approval-and neighbors may not get formal notice.
When Iron Mountain's Westview facility was announced, Miami-Dade County officials mailed notices only to properties within 500 feet of the site. That radius included only industrial properties, not nearby homes and apartments. Residents learned about the project months after construction began.
Naiya Lynn, who lives about two miles from the Iron Mountain facility, said: "I don't think they were dishonest. I just don't think they were transparent."
In Palm Beach County, Project Tango requires rezoning, triggering a public hearing process. Corey Kanterman, a resident near the proposed site, organized neighborhood opposition citing concerns about grid strain, noise, and property values.
Land use attorney Jorge Navarro said data centers should be zoned like warehouses because they're "compatible" with industrial buildings. Nick Tsinoremas, a computer science professor at the University of Miami, disagreed. He said data centers consume far more energy than warehouses and warrant separate zoning rules.
Environmental and quality-of-life concerns
Data centers require massive amounts of energy and water. A $2.6 billion facility proposed for Polk County in Central Florida would use 50,000 gallons of water daily.
Nearly 40 percent of Americans think data centers harm the environment and home energy costs, according to Pew. Thirty percent believe they reduce quality of life for nearby residents.
Cooling systems produce a low humming noise that neighbors frequently cite as a nuisance. Residents also worry about strain on local utility grids.
Gov. Ron DeSantis, a vocal skeptic of AI and data centers, signed a law in May allowing municipalities to block data center developments and preventing facilities from passing energy costs to nearby residents.
Tsinoremas offered a counterpoint: as technology advances, data centers will likely become more energy efficient, requiring less water and power to operate.
Jobs and tax revenue
Tech companies argue data centers bring employment and tax revenue to communities. Iron Mountain's Westview facility will create 30 jobs. Developers say these facilities are necessary infrastructure for modern internet services.
For real estate professionals, understanding data center development is increasingly important. These projects affect zoning, property values, neighborhood character, and municipal planning decisions. Learn more about AI's role in real estate and construction, or explore how brokers can stay informed about infrastructure changes affecting their markets with an AI learning path for real estate brokers.
Your membership also unlocks:
