See where data center developers are looking to build in Kentucky

See where data center developers are looking to build in Kentucky

News ClipRichmond Register·KY·7/7/2026

Kentucky lawmakers have approved statewide sales tax breaks for hyperscale data centers. This legislative action is encouraging developers to consider Kentucky as a prime location for building these large, electricity-intensive operations.

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Gov: Kentucky lawmakers

Kentucky lawmakers have approved statewide sales tax breaks for hyperscale data centers, making the state an attractive location for developers. These facilities are characterized as massive and electricity-intensive, capable of consuming power comparable to an entire power plant.

While Kentucky has historically hosted smaller data centers for various online services like digital cloud storage, the recent surge in artificial intelligence investments from technology companies has led to a proliferation of larger "hyperscale" data centers nationwide. The newly enacted sales tax breaks are serving as a significant incentive to attract these larger-scale data center developments to Kentucky.