New committee formed as Cave City data center lawsuit continues
Cave City, Kentucky is facing an ongoing lawsuit from Kentucky Industrial Alliance, LLC, challenging the city's 12-month data center moratorium. Two city council members have publicly commented on the legal battle, and a new three-member committee has been formed to review the proposed hyperscale data center project. The city council approved the moratorium following significant public opposition due to concerns about water usage, energy demand, noise, and environmental impacts.
Two members of the Cave City Council, Andrew Bagshaw and Leticia Cline, have provided new public comments regarding the city's ongoing legal battle over its data center moratorium. Their statements followed a special council meeting, which largely involved a closed session to discuss pending litigation.
Kentucky Industrial Alliance, LLC, filed a lawsuit in Barren Circuit Court against the City of Cave City, its Council, and the Joint City-County Planning Commission. The company challenges the city's 12-month moratorium on data centers, arguing it had already submitted a development plan for a 381-acre tract (the Branstetter property) and invested millions before the moratorium took effect.
The moratorium itself was enacted on May 20 after months of public debate and significant resident opposition. Concerns included water usage, energy demand, noise, and environmental impacts of a proposed hyperscale data center.
Councilman Bagshaw announced the formation of a committee, including himself, Councilwoman Cline, and Councilman Denny Doyle, to review the data center project. The committee has met with attorney Aaron Smith of ELPO Law, outside counsel retained by the city for the lawsuit. Both Bagshaw and Cline emphasized the city's commitment to transparency within legal constraints, with Cline also addressing questions about the city's decision to hire specialized legal counsel.