Developer says it wants to update former Lexington data center, not build new
DartPoints clarified its intent to update an existing Lexmark data center in Lexington, Kentucky, rather than build a new large facility, as the Lexington-Fayette Urban County Planning Commission prepares to vote on new zoning rules that would ban large data centers. The company emphasized its commitment to local needs, reduced environmental impact, and community engagement amidst an active moratorium. The project is currently on hold due to a temporary moratorium passed by the Lexington-Fayette Urban County Council.
DartPoints Operating Company, a Dallas-based firm, announced its intention to update the former Lexmark data center at 745 W. New Circle Road in Lexington, Kentucky, rather than constructing a new, large-scale facility. The statement comes a day before the Lexington-Fayette Urban County Planning Commission is set to vote on new zoning regulations that would prohibit data centers larger than 50,000 square feet across Fayette County. DartPoints, which acquired the 30-acre property for $29 million in May, clarified that its facilities are "small, rightsized" and aim to serve local needs, not function as "large hyperscale campuses."
The property, which includes an 81,600-square-foot building previously used as a data center by IBM, has operated as such since the 1990s. DartPoints stated it plans to redevelop the existing site to support AI, potentially scaling power capacity to 70 megawatts without requiring new transmission lines. The company also detailed plans for environmental improvements, including noise reduction and minimized water usage through closed-loop cooling systems.
Amid community questions, DartPoints President and CEO Scott Willis emphasized transparency and responsible long-term neighborhood integration. However, the project is currently on hold as city officials confirm DartPoints did not secure necessary approvals before a temporary moratorium on data center developments, enacted by the Lexington-Fayette Urban County Council in June, took effect. This moratorium is scheduled to expire on October 31.
The proposed zoning amendment, if passed by the Planning Commission and subsequently the Council, would only permit "minor data centers" (up to 50,000 square feet) in specific industrial zones, subject to plans for water/energy consumption, noise mitigation, and transmission line impact assessments. It also proposes a 1,000-foot setback from residential or agricultural zones, schools, and daycare centers for any data center infrastructure.