AI faces tighter guardrails and potential growth roadblocks after election
Kentucky lawmakers heard testimony from Eastern Kentucky Cooperative and Big Rivers Electric Cooperative about how data center developers should pay for added power infrastructure and capacity studies. The discussion came amid broader concerns about data centers’ electricity and water consumption, local opposition and potential regulatory scrutiny after the election.
Investors reacted to the election with increased concern that artificial intelligence development and data center construction could face tighter regulation, energy constraints and local resistance. Legal experts at the University of Kentucky cited potential developer liability, pending federal oversight and opposition to the expansion of data centers.
At the Kentucky Capitol in Frankfort, representatives of Eastern Kentucky Cooperative and Big Rivers Electric Cooperative told lawmakers that developers should cover upfront study and infrastructure costs associated with new data center demand. Big Rivers President and CEO Don Gulley said data center contracts could eventually help stabilize electric rates if developers pay for capacity upgrades, while officials acknowledged that AI remains an important economic driver under greater regulatory scrutiny.