Beshear signs executive order to protect Kentucky from data center harms
Gov. Andy Beshear signed an executive order establishing strict requirements for data center developers in Kentucky. The order prohibits utility companies from raising rates to recover data center costs and requires developers to prove their projects won't negatively impact air quality, water use, or natural resources. This action responds to community concerns in eastern Kentucky regarding potential impacts on electricity bills and the environment.
Kentucky Governor Andy Beshear signed an executive order on Wednesday, implementing stringent new requirements for data center developers operating within the state. The order, announced during a Team Kentucky update, aims to protect residents from potential harms associated with data center development.
Key provisions of the executive order include a mandate for developers to demonstrate that their projects will not lead to increased utility rates for Kentucky consumers. Furthermore, utility companies are explicitly prohibited from raising rates to recoup costs associated with data center projects. The order also directs the Kentucky Energy and Environment Cabinet to deny permits for any data center development that could negatively impact air quality, water use, water quality, or other natural resources.
Governor Beshear emphasized that data centers must fully cover their own energy demands, including any necessary new power generation. The move comes amid growing concerns from communities, particularly in eastern Kentucky's Boyd and Greenup counties, where residents have voiced alarm over the potential for hyperscale data center projects to impact their electricity bills and local environment. Beshear reiterated his long-standing position that facilities unable to meet his energy cost requirements are not welcome in the state.