New Lexington data center won’t get city money. Mayor supports ‘tight controls’
Lexington officials, including Mayor Linda Gorton and Councilmember Tyler Morton, are expressing concerns about data center development after DartPoints acquired a former Lexmark data center property with plans for expansion. The city has stated it will not provide financial incentives for the project and is reviewing existing regulations, with a proposed zoning amendment to define and restrict major data centers in certain industrial districts. Officials cite minimal job creation, potential utility cost increases, and impacts on neighborhoods and infrastructure as reasons for stricter controls.
Lexington Mayor Linda Gorton and District 1 Councilmember Tyler Morton have voiced concerns regarding the recent acquisition and planned expansion of a former Lexmark data center property by DartPoints Operating Company in Lexington. The city was not informed of the private sale until its completion and has since stated it will not support public incentives for the project, despite the property already being zoned for data center operations.
Mayor Gorton, who is seeking re-election, emphasized the need for "tight controls" on data centers, citing their limited job creation and potential to increase utility costs for local residents. Councilmember Morton, whose district includes the DartPoints site, echoed these concerns, highlighting potential effects on surrounding neighborhoods, infrastructure, utility demands, and long-term land use, suggesting alternative uses for the site such as affordable housing.
DartPoints, a Dallas-based company, acquired the property at 745 W. New Circle Road for $29 million, with plans to expand its current 20-30 megawatt capacity to 70 MW to serve larger, more power-intensive customers, including those in artificial intelligence. The site includes over 345,000 square feet, previously partially leased and including former IBM data center space.
In response to these developments, the city is actively reviewing its comprehensive plan and zoning ordinances, which currently lack specific regulations for data centers. A consultant for the Blue Sky Small Area Plan is drafting a zoning ordinance amendment to define and regulate data centers, proposing that major data centers (over 50,000 square feet) would not be permitted in industrial districts under the amendment. The Planning Commission is scheduled to hear public input on the draft plan on June 11.