Lexington planners recommend approval of new data center zoning rules for Fayette County
Lexington planning staff has recommended approval of a zoning ordinance text amendment for Fayette County that would prohibit major data centers (over 50,000 sq ft) in all zones. Minor data centers would be permitted as conditional uses in certain industrial areas with strict environmental and operational requirements. This proposal follows a moratorium on data center development initiated by the Urban County Council in June 2026.
Lexington, Kentucky, planning staff has recommended the approval of a significant zoning ordinance text amendment in Fayette County, which seeks to establish new, restrictive regulations for data centers. The proposed framework would prohibit "major data centers," defined as facilities exceeding 50,000 square feet, across all zoning categories. For "minor data centers," defined as under 50,000 square feet, the amendment proposes their inclusion as conditional uses strictly within Wholesale and Warehouse Business (B-4) and Light Industrial (I-1) zones.
These minor facilities would face stringent requirements regarding noise, generator operation, energy and utility demand, and mandated separation from sensitive areas. The planning staff justified these recommendations by citing concerns over the substantial land use impacts of large data centers, including noise, emissions, and high energy and water consumption, which they believe are incompatible with the city's Comprehensive Plan goals. They noted that existing zoning language is outdated and predates the modern scale and resource intensity of data center operations.
The Urban County Council initiated a moratorium on data center developments in Fayette County in June 2026 to allow time for a comprehensive study and the drafting of these new regulations. While the Zoning Committee recommended postponing the proposed text, planning staff firmly supports its approval. The Urban County Planning Commission held a public hearing on the amendment on July 30, with another Zoning Items Public Hearing scheduled for August 27. The Electric Power Research Institute projects that data centers could account for 9% to 17% of U.S. energy demand by 2030, a statistic cited in the staff report.