Kentucky PSC gives go ahead for data center in Hancock County
Kentucky's Public Service Commission has approved an electricity service contract between data center developer TeraWulf and Big Rivers Electric Corporation for a hyperscale data center in Hancock County. This approval is a crucial step for the power-intensive facility, which will be built at a former aluminum smelter site. While the commission cited economic benefits, some local residents voiced concerns about potential environmental impacts and rising utility bills.
The Kentucky Public Service Commission has approved a critical electricity service contract for a hyperscale data center project by TeraWulf in Hancock County, Kentucky. This approval, issued on a Friday, is a significant milestone enabling the power-intensive facility to move forward at the site of a former Century Aluminum smelter.
The contract, between TeraWulf, an investor-owned data center developer, and utility Big Rivers Electric Corporation, was deemed to provide adequate protections for ratepayers, appropriately allocate financial risks, and set fair rates. TeraWulf plans to utilize 482 megawatts of existing electricity transmission infrastructure at the site near the Ohio River, with the project reportedly backed by artificial intelligence company Anthropic. TeraWulf has committed to meeting requirements set by Democratic Kentucky Gov. Andy Beshear for data center developers.
The commission's 30-page order stipulates that TeraWulf will cover the costs of electricity from the regional power grid operator MISO and its own transmission infrastructure upgrades. The agreement also includes protections should the data center use less electricity than projected. The PSC considered the project's economic development benefits, noting TeraWulf's projection of at least 90 new jobs and potential for tens of millions in utility revenue and local tax revenue.
Despite the approval, the commission acknowledged concerns raised by local residents during a July public hearing in Hancock County regarding potential environmental impacts and the long-term economic benefits. Gary Elder, a resident of Lewisport, voiced worries about data centers exacerbating rising utility bills. While acknowledging potential local tax revenue after discussions with Hancock County Judge-Executive Johnny Roberts, Elder expressed ongoing concerns about the potential downsides such as noise, pollution, and increased utility costs.