New executive order establishes criteria for data centers in Kentucky
Kentucky Governor Andy Beshear issued a new executive order setting criteria for future data centers, focusing on responsible investment, transparency, and environmental protection. Developers must submit plans to protect residents from increased utility bills and environmental degradation, with the state denying permits for projects that negatively impact air or water quality. The order also emphasizes local decision-making, though its impact on an existing project in McCracken County remains unclear.
Kentucky Governor Andy Beshear announced a new executive order establishing stringent criteria and requirements for future data center developments across the state. The order mandates that potential data centers invest responsibly, operate transparently, and partner with local communities. This move comes in response to rising demand for data centers and energy resources nationwide, aiming to mitigate potential harmful impacts on Kentucky's residents and environment.
Under the executive order, project developers must submit detailed plans to the Energy and Environment Cabinet, demonstrating how Kentuckians will be shielded from increased utility bills due to data center power consumption. The Public Service Commission is also directed to prevent utility companies from raising rates to cover data center costs. Furthermore, the Energy and Environment Cabinet will deny permitting applications where data centers would adversely affect air quality, water use, water quality, federal wetlands, or natural resources.
The order also stipulates that data centers must pay state, local, and school taxes, and commit to transparent public engagement with local leaders and residents regarding proposed locations, impacts, and job opportunities. Governor Beshear emphasized that these are minimum standards, and the ultimate decision to welcome data centers rests with individual communities. He also addressed an existing data center project at the DOE Paducah Site in McCracken County, expressing uncertainty about the order's full impact due to it being on federal land, but noted that a company involved has reached out for discussions.