Governor Andy Beshear issued an executive order on data centers
Kentucky Governor Andy Beshear issued an executive order regulating new data centers statewide. The order aims to prevent utility rate hikes due to data center operations and prohibits permits for projects negatively impacting air, water, or natural resources. It also requires developers to submit energy and environmental impact plans, while preserving local communities' final say.
Kentucky Governor Andy Beshear has issued an executive order aimed at regulating new data centers across the state. The order includes provisions to prevent local utility companies from increasing rates due to data center operations and denies permits for any proposals that would negatively impact air and water quality, protected wetlands, or other natural resources.
Governor Beshear emphasized that the executive order does not automatically approve any data center project, reiterating that local communities will retain the final authority on such developments. Developers will be mandated to submit an energy and environmental impact plan to the Energy and Environment Cabinet before any construction can be approved. The cabinet noted that 30 communities statewide have already implemented local ordinances and moratoriums targeting data center construction.
Senate President Robert Stivers expressed agreement with the core principles of Governor Beshear's order regarding data center costs, stating that developers, not Kentucky ratepayers, should bear the cost if new infrastructure is required. However, Stivers differed on the process, advocating for the establishment of a lasting framework for data centers through a legislative process with input from all involved parties, rather than via executive order.