‘We have to go further’: Kentucky governor signs data center order amid mixed reaction
Kentucky Governor Andy Beshear signed an executive order to regulate data center development across the state, requiring developers to submit energy plans, protect against rate increases, and address environmental impacts. The order has drawn mixed reactions, with some residents and legislators arguing it does not go far enough to protect communities, while a developer expressed support. Local critics desired a statewide moratorium.
Kentucky Governor Andy Beshear signed Executive Order 2026-494 to address data center development across the state, prompted by proposals in multiple counties, including Mercer County. The order mandates data center developers to submit an energy plan to the Energy and Environment Cabinet, demonstrating how they will prevent electric rate increases for existing businesses and families. It also requires the Public Service Commission to prevent utility companies from passing on data center-related costs to ratepayers and directs the Energy and Environment Cabinet to deny permits for projects negatively impacting air quality, water use, water quality, federal wetlands, or natural resources. Developers must also pay their full share of state, local, and school taxes and engage transparently with communities.
The executive order has elicited mixed reactions. Chris Walker, a candidate for judge executive in Mercer County and a vocal critic of data center expansion, and Bethany Corea, an organizer for We Are Mercer County, believe the order is insufficient. They argue it lacks specific enforcement mechanisms and does not address the responsibilities of local governments, suggesting a statewide moratorium would have been a more effective measure.
Conversely, Panattoni, a developer with a proposal near Burgin in Mercer County, expressed support for the order. A spokesperson stated that the order's principles align with the company's existing practices of transparency, responsible planning, and collaboration. State Representative Adam Moore and House Speaker David Osborne acknowledged the order's intent but also highlighted its perceived shortcomings in accountability and enforcement compared to proposed legislation like House Bill 593, which passed the House but died in the Senate. Rep. Josh Bray, sponsor of HB 593, emphasized that significant work remains and committed to re-filing a more thorough bill next year.