Data center-related ordinance on Cave City council agenda

The Cave City City Council in Kentucky is scheduled to vote on a controversial zoning ordinance change for data processing centers. Mayor Dwayne Hatcher initiated the request for these changes at an April 30, 2026, Joint City-County Planning Commission meeting, citing a desire to create opportunities for data center development while ensuring local control. The proposed ordinance amendment introduces specific requirements for data processing centers, including generating at least 50% of their own electricity, utilizing self-contained cooling systems that coordinate with local water utilities, submitting a decommissioning plan, and adhering to strict setback rules from residential zones (1,000 feet) and property lines (200 feet). Additionally, Hatcher requested that data centers be classified as a "permitted use" rather than a "conditional use" and be restricted to heavy industrial zones (I-2). The classification as "permitted use" would streamline the approval process by allowing projects under established guidelines with fewer procedural reviews, contrasting with "conditional use" which requires review by the Barren County Board of Adjustments. Neighboring municipalities like Glasgow and Park City currently zone data centers for heavy industrial areas but under conditional use. Barren County itself lacks countywide zoning, meaning no restrictions outside city limits. The initiative comes amidst increasing demand for data centers due to artificial intelligence, with other Kentucky counties like Simpson and Oldham experiencing opposition, lawsuits, or moratoriums related to data center development, despite the Kentucky General Assembly passing tax incentives in 2025.