Beshear issues executive order on data centers
Kentucky Governor Andy Beshear issued an executive order to regulate future data center developments across the state. The order mandates energy plans, prohibits utility rate increases for existing customers due to data centers, and requires environmental protection and transparent community engagement. Local communities will still make the final decision on whether to welcome data centers.
Kentucky Governor Andy Beshear announced Thursday he has signed an executive order to establish a statewide framework for data center development. The order is a response to the increasing demand for data centers and aims to protect Kentucky residents and businesses from potential negative impacts.
Under the new executive order, data center project developers must submit an energy plan to the Energy and Environment Cabinet (EEC) demonstrating how their operations will avoid raising electric bills for Kentucky families. Additionally, the Public Service Commission (PSC) is required to prevent utility companies from increasing rates to cover data center development or operational costs.
The Governor's directive also empowers the EEC to deny permitting applications if a data center project would harm air quality, water use, water quality, water supply, federal jurisdictional wetlands, or other natural resources. Developers are also expected to pay their equitable share of state, local, and school taxes. Transparency in public discussions with local leaders and residents is another key requirement of the order. While the order sets strict conditions, Governor Beshear emphasized that the ultimate decision to approve or reject a data center project remains with the local community.