Kentucky residents fear AI data center could push power bills past $1,000
Residents in Hancock County, Kentucky, are actively opposing a proposed TeraWulf data center, fearing it will significantly increase their electricity bills, which are already high. The Kentucky Public Service Commission held a meeting to address these concerns, with all residents speaking against the project. Gov. Andy Beshear has issued an executive order to prevent residents from bearing the added electricity costs of data centers.
Public opposition is mounting in Kentucky against a surge of data center proposals, primarily driven by fears of soaring electricity bills. In Hancock County, where TeraWulf is proposing its Justified Data Campus, residents voiced strong concerns to the Kentucky Public Service Commission during a July meeting at Hancock County High School in Hawesville. More than a dozen locals spoke, unanimously opposing the project.
Maryland-based TeraWulf plans to build the Justified Data Campus on a former aluminum smelter site, with AI company Anthropic signing a 20-year tenant agreement. The project is expected to draw nearly 500 megawatts from the regional grid, create about 100 jobs, and generate substantial school tax revenue. However, residents like Jacob Hodge of Lewisport expressed distrust, citing a lack of transparency and concern over rising electricity costs. Kenergy, the local utility, reported average residential bills in Hancock County reaching over $260 in July, a 39% increase from July 2021.
Jamie Van Nostrand, policy director for The Future of Heat Initiative and former leader of the Massachusetts Department of Public Utilities, expressed skepticism about developer claims that ratepayers wouldn't subsidize the data center's electricity, stating that data centers generally lead to higher rates. TeraWulf is also developing the Muskie Data Campus near Ashland and is considering doubling its size to 2 gigawatts.
Kentucky utilities and state officials, including Gov. Andy Beshear, are attempting to mitigate the cost burden on residents. Gov. Beshear signed an executive order on August 6, aiming to ensure data centers, rather than residents, absorb any additional electricity costs. A proposed state bill for ratepayer protection stalled in the Senate. Local government bodies like city councils and fiscal courts also retain authority over zoning changes, and communities can seek moratoriums or stricter conditions for such projects.