Kentucky governor signs data center protection orders
Kentucky Governor Andy Beshear signed an executive order establishing new regulations for data centers planning to build in the state. The order aims to protect residents from increased energy costs and ensure data center proposals do not negatively impact air and water quality. It also requires developers to register their plans with the state government.
Kentucky Governor Andy Beshear signed a new executive order designed to implement "guardrails" for data centers seeking to establish operations in the state. The order mandates that any developer intending to build a data center in Kentucky must register their plan with the state government.
The core of the executive order focuses on protecting Kentucky ratepayers from additional energy costs. Governor Beshear emphasized that the plan, and directions given to the Public Service Commission (PSC), are structured to prevent any backdoor methods of passing costs to families, ensuring residents "don't pay a single penny extra." The order explicitly prohibits utilities from increasing rates for Kentucky residents due to the presence of a data center.
Furthermore, the executive order empowers the state government to reject data center proposals that could adversely affect air and water quality. It requires evaluation of new technologies, such as those claiming to use recycled water, and a thorough assessment of the amount and type of polluting effects. The order sets a baseline that developers must meet while still allowing local governments to negotiate deals tailored to their communities. Republicans in the General Assembly, while acknowledging the governor's protective steps, suggested that the legislature should be involved in creating state law protections.