Kentucky Lawmakers Tackle Data Center Energy Demands Amid New Project in Ashland Area
Maryland-based company Terrell Wolf announced plans for a 1-gigawatt AI data center near Ashland, Kentucky, sparking discussions about electricity use and environmental impact. Kentucky legislators have introduced bills to regulate data center development, focusing on ensuring communities want these facilities and that developers cover their own energy infrastructure costs. These efforts aim to protect taxpayers and the state's finite electrical resources.
Maryland-based company Terrell Wolf recently announced plans for a new artificial intelligence data center in the East Park Industrial Complex, approximately 12 miles from Ashland, Kentucky. The proposed facility is expected to require up to a gigawatt of power by 2030, which is equivalent to the average electricity use of 800,000 homes. Boyd County Judge Executive Eric Chaney acknowledged public skepticism about data centers but stated that the deal for this project was structured to benefit taxpayers and utility ratepayers, with the company committing to pay for all its own power.
The announcement has intensified ongoing legislative discussions in Kentucky regarding data center development. State Representative Pray discussed House Bill 593, which he termed the "Right Protection Act." This bill, which did not pass into law in the last session, aimed to ensure data centers are only built in communities that want them, requiring local executive sign-off on met requirements. Crucially, it focused on energy policy, mandating that data centers either bring their own electricity, purchase it on the open market, or prepay for all associated transmission and generation expenses to prevent ratepayers from subsidizing new power infrastructure for data centers.
Representative More also highlighted a bipartisan bill with similar goals, emphasizing that data centers coming to Kentucky should pay for their own power and any new generation or transmission updates they require. Lawmakers expressed disappointment that these bills did not become law, stressing the urgency of protecting constituents' pocketbooks, prime farmland, and waterways, particularly given Kentucky's karst topography and cave systems.
The broader concern among legislators is balancing economic development with the finite electric resources of Kentucky. They fear that massive data center electricity demands, such as the Ashland project's 1-gigawatt requirement (exceeding Kentucky Power's current in-state capacity), could divert power from advanced manufacturing facilities that create more jobs and tax revenue. The idea of "Data Center Ready Communities" was proposed, mirroring "Nuclear Ready Communities" programs, to ensure transparency, public education, and local buy-in for data center projects.