Kentucky hyperscale data center uses housing law against residents' zoning challenge
A court battle is underway in Simpson County, Kentucky, challenging the approval of a TenKey LandCo hyperscale data center campus and a state law that restricts who can sue over zoning decisions. Residents are concerned about the project's impact on their community, particularly regarding electricity and environmental issues. The case has broader implications for how residents can challenge industrial developments in Kentucky.
A legal battle is unfolding in Franklin, Simpson County, Kentucky, over a proposed 200-acre hyperscale data center campus by TenKey LandCo. The Franklin Planning and Zoning Commission approved TenKey's preliminary development plan in March, which includes on-site natural gas-fired power generation.
In April, the Franklin Citizens for Responsible Development sued, challenging the approval. A key element of the dispute is House Bill 321, a state law signed in 2025 that narrows the scope of who can sue over local zoning decisions, limiting it to property owners in the same zoning category as the proposed development. Attorneys for TenKey LandCo have argued for the case's dismissal based on this law, while the citizens' group contends the restriction is unconstitutional and unfairly prevents affected residents from legal recourse.
Judge Mark Thurmond of Simpson County Circuit Court heard arguments and indicated in August he had a "pretty good idea" of his thinking, with another hearing scheduled for October. The outcome of this case is closely watched, as community advocates believe it could set a precedent for how residents respond to and challenge large industrial projects, including data centers, across Kentucky, particularly given concerns about electricity, water, land use, and potential pollution from such facilities.