Guest columnist: Ky. can lead on data centers without leaving communities behind
A guest columnist argues that Kentucky can attract data centers while protecting communities by implementing policies that ensure developers cover infrastructure costs, use modern cooling systems to reduce water usage, and minimize noise. The article highlights the economic benefits of data centers, including job creation and increased property tax revenues, while emphasizing the importance of local oversight. It discusses the state's approach to balancing economic development with community concerns.
Robert Stivers, president of the Kentucky State Senate, addresses common concerns regarding data center development in Kentucky, asserting that the state can attract these investments without negatively impacting local communities. He highlights that Kentucky's approach differs from negative national narratives, particularly concerning infrastructure costs. Stivers states that Kentucky advocates for a full-cost allocation model, or tariff, ensuring that developers, not existing ratepayers, bear the expense of new transmission lines, substations, or generating capacity required by their facilities.
The column also tackles environmental concerns, noting that modern data centers increasingly use closed-loop cooling systems, significantly reducing water consumption compared to older models. Regarding noise, Stivers differentiates modern AI data centers from cryptocurrency mining operations, stating that the former operate quietly, often less noisily than commercial building HVAC systems. He emphasizes the importance of local officials and residents asking questions and ensuring projects are a good fit for their communities.
Stivers points to a recent report from the Energy Planning and Inventory Commission, which suggests Kentucky is well-positioned to compete for data center investments while protecting the electric grid and ratepayers. He outlines the economic benefits, including hundreds of skilled construction jobs and over 100 permanent, well-paying positions, many exceeding $100,000 annually. Additionally, data centers significantly boost local property tax revenues, potentially increasing school district funds by 25 to 40 percent and supporting other local government services without raising tax rates.
Ultimately, Stivers concludes that Kentucky's policies can achieve both economic growth and community protection by mandating that developers cover all costs, leveraging modern technology for minimal environmental impact, and ensuring lasting local economic benefits.