Kentucky is planning before the data center power surge
Kentucky is developing statewide energy-planning tools and policies ahead of expected data center growth. Officials and energy leaders are considering cost-allocation rules, reliable generation needs and local review standards so new data centers pay for the infrastructure they require without shifting costs to existing customers.
Kentucky is preparing for a potential surge in data center development by assessing electricity demand, transmission needs and the effects of large-load customers on existing ratepayers. Eric King, executive director of the Energy Planning and Inventory Commission, said the state can attract investment while requiring data center developers to provide application fees, upfront infrastructure payments, financial security and protections against stranded costs.
The Energy Planning and Inventory Commission, created by the Kentucky General Assembly in 2024, is developing the Kentucky Electricity Adequacy Plan to evaluate statewide generation, demand and transmission. The article argues that Kentucky should preserve and modernize viable coal plants while adding new generation, and says local officials and residents should determine whether individual proposals fit their communities based on land, water, infrastructure, tax and employment impacts.
King also called for federal regulators and policymakers, including FERC, the EPA, Congress and the Department of Energy, to support reliable generation and faster interconnections. No specific data center project or local approval is identified.