A Kentucky county passes a data center moratorium — with a city-sized hole
Mercer County, Kentucky, passed a one-year moratorium on data center applications in unincorporated areas. However, the city of Burgin is considering annexing land for a proposed Panattoni data center, which would bypass the county moratorium and local zoning rules. Residents are actively opposing the annexation and project, citing concerns about environmental impact, property values, and electricity bills.
The Mercer County Fiscal Court in Kentucky unanimously enacted a one-year moratorium on new data center project applications within its unincorporated areas. However, this ban would not apply to data centers located in cities within the county.
Simultaneously, the Burgin City Council is considering a proposal to annex farmland from the county, effectively doubling its size. This annexed land is where Panattoni Data Centers intends to develop its "Project Bluegrass" hyperscale data center. Critics, including the grassroots organization We Are Mercer County, express concerns about potential impacts on the environment, property values, and electric utility bills, noting that Burgin currently lacks specific zoning rules to regulate such facilities. The previous mayor of Burgin resigned, and interim Mayor Joe Monroe states he is neutral on the annexation until a plan is proven.
At a recent city council meeting, over a dozen residents voiced strong opposition to the project and the annexation, despite the council not taking up the proposal. Panattoni claims the project would provide over 1,500 construction jobs, 100 permanent jobs, and significant tax revenue, but has not yet held a public meeting to detail its plans.
Communications obtained through open records requests reveal that the Burgin Independent School District superintendent and board members are advocating for the data center due to potential tax revenue of $25-$30 million annually, with some board members reportedly mocking opponents. Benjamin Bradshaw, a school board member and employee of the utility company that would serve the data center, provided talking points to argue the project would not raise customer bills.