Beshear signs executive order establishing protections for Kentucky data centers
Kentucky Gov. Andy Beshear signed an executive order to protect utility customers, natural resources, and local communities from potential impacts of large data centers. The order requires developers to submit energy plans showing no electricity cost increases for other customers and directs environmental officials to reject permits that would harm air, water, or natural resources. Data center operators must also pay local taxes and engage in public discussions.
Kentucky Governor Andy Beshear has signed an executive order aimed at safeguarding the state's utility customers, natural resources, and local communities from the potential adverse effects of large data center developments. The order mandates that data center developers provide energy plans proving their projects will not lead to increased electricity costs for existing customers.
Furthermore, the executive order instructs the Kentucky Public Service Commission to prohibit utilities from passing on data center-related expenses through higher rates to other consumers. State environmental officials are also directed to reject any permit applications that could negatively impact Kentucky's air, water, or other natural resources.
In addition to these environmental and economic protections, the order requires data center operators to pay applicable local and school taxes. It also emphasizes the importance of data center companies participating in public discussions with community leaders and residents to ensure local input in development decisions. Governor Beshear stated that the order sets a baseline, indicating that projects unable to meet these requirements would not be permitted in Kentucky. This move comes amid ongoing debates surrounding data center proposals across the state, including a planned AI and high-performance computing campus at the U.S. Department of Energy's Paducah Site.