Beshear signs data center-related executive order
Kentucky Governor Andy Beshear signed an executive order to regulate data center development across the state. The order requires developers to submit energy plans, prevents utility rate increases due to data centers, and mandates environmental protection and fair tax contributions. It also empowers local communities to make final decisions on data center projects.
Kentucky Governor Andy Beshear signed an executive order on Thursday in response to the increasing demand for data centers and energy resources within the state. The order aims to safeguard Kentucky families and existing businesses from potential negative impacts, particularly concerning electric bills, and to empower local communities in the decision-making process for data center projects.
The executive order mandates that all data center project developers submit a comprehensive energy plan to the Energy and Environment Cabinet. This plan must demonstrate how the proposed project will operate without causing an increase in electricity costs for residents and businesses. Additionally, the Public Service Commission is now required to prevent utility companies from raising rates to recoup costs associated with data center operations.
Governor Beshear further directed the Energy and Environment Cabinet to reject permit applications for data centers that would detrimentally affect air quality, water usage, water quality, water supply, federal jurisdictional wetlands, or other natural resources. The order also stipulates that data center developers must contribute their fair share of state, local, and school taxes and commit to transparent engagement in public discussions with local community leaders and residents.
Underscoring the local control aspect, Governor Beshear clarified that the order does not approve any data centers, leaving the final decision to local communities. He stated that the order effectively blocks any center that fails to meet the newly established requirements, emphasizing his trust in local leaders' judgment for significant projects and his commitment to monitoring all data center developments in Kentucky.