Gov. Beshear's executive order could impact TenKey's Franklin data center
Governor Andy Beshear has issued an executive order requiring data center developers in Kentucky to provide comprehensive plans regarding utility, environmental, tax, and community impacts for state permits. This new statewide regulation could directly affect TenKey's proposed $6 billion data center in Franklin, Simpson County, which previously received contingent approval but is also involved in an ongoing lawsuit challenging a county ordinance restricting tech centers. Local officials are now evaluating how these new state requirements will integrate with existing local approvals and pending legal challenges.
Kentucky Governor Andy Beshear signed an executive order on August 6, mandating that data center developers fully account for their utility, environmental, tax, and community impacts to receive state permits. The directive requires a comprehensive energy plan to ensure projects do not increase electricity bills for residents or businesses, prohibits utility rate hikes for data center infrastructure, and bars permits for facilities negatively impacting air quality, water, wetlands, or natural resources. Developers must also comply with state, local, and school tax obligations and engage transparently with local communities about job creation and project impacts.
This executive order could directly affect TenKey's planned $6 billion data center near Exit 2 off Interstate 65 in Franklin, Simpson County, which includes three 200,000-square-foot facilities. The project received contingent approval from the Franklin Planning & Zoning Commission in March. However, TenKey must now consider how the governor's new statewide requirements, particularly for state permits, will integrate with its current detailed planning and permitting phase.
Franklin Commissioner Jamie Powell noted the legal complexities due to ongoing lawsuits. Conversely, Commissioner Wendell Stewart acknowledged the order addresses primary community concerns about data centers, stating it would apply to any proposed data center statewide. Commissioner Kelly Bush suggested the order could impact TenKey, especially if state environmental approvals or energy plans are pending, while clarifying it doesn't automatically undo Franklin's local planning decision. Franklin Mayor Larry Dixon and Commissioner Dale McCreary offered no comment.
Adding another layer of complexity, TenKey filed a lawsuit in January against the Simpson County Fiscal Court. This suit seeks a declaratory judgment on the interpretation of laws regarding a county ordinance passed in December, which restricts advanced technology centers. The lawsuit, still pending, aims to determine if the Simpson County Fiscal Court can regulate a project within Franklin city limits, given the city's separate planning and zoning authority. Simpson County Judge-Executive Mason Barnes expressed uncertainty about whether the TenKey project would fall under the new executive order's regulations, noting the order's deference to local government.