Data Center Dilemma

Kentucky communities are facing a surge in data center development, often spurred by state-level tax incentives like House Bill 775. This has led to local governments amending zoning regulations to accommodate or control these projects, as seen with Warren County's planning commission opening the door for potential construction. However, these developments are frequently met with significant public opposition and challenges. In Franklin, Simpson County, TenKey LandCo LLC's preliminary plan for three data centers was approved by the Franklin Planning and Zoning Commission despite contentious meetings where citizens voiced concerns about environmental impacts, particularly on the region's karst topography and water systems. TenKey LandCo LLC subsequently filed a lawsuit against Simpson County after it attempted to enact an ordinance requiring a conditional use permit for the project. Attorney Gregory Dutton, representing TenKey, frequently dismissed public inquiries as too preliminary or outside the scope of discussion. Elsewhere, Oldham County and Ashland have enacted moratoriums to pause data center applications and allow time for more robust zoning regulations. Oldham County's 150-day moratorium, voted in favor by the Fiscal Court, was prompted by public outcry against a large-scale proposal from Western Hospitality Partners. Ashland's Board of Commissioners passed a 180-day moratorium, with Commissioner DJ Rymer expressing skepticism about job creation claims and concerns over increased utility costs and necessary infrastructure upgrades for the impoverished region. State legislators, including Rep. Josh Bray and Rep. William Lawrence, are working on House Bill 593 to mandate that data center developers cover infrastructure costs, aiming to protect utility customers from higher bills.