New executive order aims to protect Kentucky from data center harm
Kentucky Governor Andy Beshear signed an executive order to protect the state from potential harmful impacts of data center developments. The order requires developers to submit energy plans, prohibits utility rate increases, and mandates environmental protection. It also emphasizes transparent community engagement and fair taxation.
Kentucky Governor Andy Beshear signed an executive order in Frankfort on Thursday, August 7, 2026, to establish a protective framework against potential harmful impacts from future data center developments in the state. Governor Beshear stated that the order is a response to the increasing demand for data centers and aims to ensure that companies wishing to locate in Kentucky demonstrate their commitment to being "good neighbors," with ultimate approval resting on local community decisions.
The executive order imposes several key requirements on data center project developers. They must submit an energy plan to the Energy and Environment Cabinet (EEC) detailing how their operations will not lead to increased electric bills for Kentucky residents and businesses. Additionally, the order directs the Public Service Commission (PSC) to prohibit utility companies from raising rates to recover costs associated with data center development or operations. The EEC is also mandated to deny any permitting applications if a data center project would negatively impact air quality, water use, water quality, water supply, federal jurisdictional wetlands, or other natural resources.
Furthermore, Governor Beshear's order stipulates that data center developers must pay their fair share of state, local, and school taxes. They are also required to engage transparently in public discussions with local community leaders and residents. Governor Beshear clarified that the order does not approve any data center but rather sets stringent requirements that any proposed facility must meet, empowering local communities to make informed decisions and ensuring the protection of the state's environment and power bills for future generations.