Frustration over Kentucky data center has found another target — ethics complaints

Carroll County, Kentucky residents, led by Amy Wright and Anastasia Coots, have escalated their opposition to a proposed hyperscale data center project by Poe Companies and PowerHouse Data Centers. They have filed ethics complaints against members of the Carrollton City Council, alleging conflicts of interest and violations of open meetings laws.

The complaints center on the council's approval of a secret land deal for the data center, with residents claiming that several council members or their immediate family members work for Louisville Gas & Electric and Kentucky Utilities (LG&E-KU), a utility company poised to significantly profit from the data center's high energy consumption. These connections, residents argue, should have prompted abstention from the vote.

Following a hearing on September 17, the Carroll County Ethics Commission decided to table complaints regarding financial conflicts but launched a formal investigation into other allegations, including misconduct and withheld records. This move comes as Mayor Robb Adams of Carrollton unexpectedly pulled an agenda item that would have allowed the city to opt-out of county ethics rules and create its own commission. Community members have also submitted complaints to various law enforcement agencies, including the commonwealth attorney's office, expressing broader concerns about the transparency and financial interests surrounding the project.

LG&E-KU, whose parent company projects substantial earnings growth thanks to data center demand, is also extending the life of coal-fired power plants, partly due to anticipated data center energy needs. Critics, like Byron Gary of the Kentucky Resource Council, warn that the costs of these plant upgrades will ultimately be borne by ratepayers and taxpayers, potentially raising power bills for Carroll Countians.