Large data center in Jacksonville on FPL. Client thinks they qualify for Florida manufacturing exemption on electricity. I'm not convinced - data processing isn't traditional manufacturing. Florida Statute 212.08(7)(i) is pretty specific about tangible personal property. Anyone have experience with data centers?
Florida Power & Light - data center exemption question
Data centers are tough in Florida. The exemption requires production of tangible goods. Unless they're doing something like 3D printing or manufacturing physical products, just processing data won't qualify.
Had this exact case in Charleston with Santee Cooper. Data center claimed manufacturing exemption and got denied on audit. South Carolina has similar language - tangible personal property requirement kills most data centers.
Connecticut allows data centers under certain conditions - they process raw data into finished information products. But Florida is much stricter. I'd focus on other opportunities like demand response programs.
Update: FPL confirmed no exemption available for pure data processing. Did find $3,200/month in demand charge errors though, so still a win for the client.
Good catch on the demand charges. Data centers are goldmines for power factor and demand billing errors even if tax exemptions don't apply.