Developer says Ky data center with Anthropic ties meets new limits on environmental, energy impact

TeraWulf, a Maryland-based data center developer, is advancing its "Justified Data Campus" project in Hancock County, Kentucky, despite local opposition. The company submitted an energy plan to the Kentucky Public Service Commission (PSC) and Energy and Environment Cabinet, asserting that the facility will adhere to new environmental and energy impact limits established by Governor Andy Beshear's recent executive order. The project, which has a 20-year, $10 billion contract with AI developer Anthropic, is planned for the site of a former aluminum smelter and will utilize its existing 482-megawatt power connection.

Local residents expressed concerns at a Kentucky PSC hearing last month about potential water consumption, air and noise pollution, and increased electricity bills. However, Hancock County Judge-Executive Johnny Roberts provided a letter of support for the project. TeraWulf contends the data center will have minimal environmental impact and consume less water than the previous smelter.

The company projects significant economic benefits, including $7 million annually in taxes for the school district, $14 million in state sales tax on electricity, and over $22 million in annual property taxes. The Kentucky PSC is tasked with approving the contract between Justified Data Campus and local utilities, which includes provisions for power curtailment during grid strain.

TeraWulf is also planning a larger "Muskie Data Campus" near Ashland, bordering Boyd and Greenup counties, for which an energy plan and utility agreement with Kentucky Power are still pending.