Developer wants to put more than $1B into Lexington data center, records show
DartPoints plans to invest over $1 billion to redevelop a former Lexmark data center in Lexington, Kentucky, to support AI demand. However, the Lexington-Fayette Urban County Council has enacted a moratorium on data center development and is proposing a restrictive zoning amendment. The city's mayor has also stated opposition to public incentives for the project.
DartPoints, a data center development company led by President and CEO Scott Willis, plans to invest approximately $1.05 billion to transform a former Lexmark data center campus in Lexington, Kentucky, into a facility serving artificial intelligence demand. The investment would come in two stages: an initial $300 million in the facility, followed by up to $750 million as power capacity increases. This potential investment would make it one of Kentucky's most expensive data center projects.
DartPoints acquired the nearly 30-acre, $29 million former Lexmark property, previously used by IBM as a data center, in mid-May. The site already possesses existing cooling and power management equipment, backup generators, and a Kentucky Utilities substation. DartPoints aims to scale the power capacity from about 30 megawatts to 70 megawatts, the equivalent of powering approximately 70,000 homes.
Despite DartPoints' plans, local government officials have taken restrictive actions. Lexington Mayor Linda Gorton's office has stated it will not support public incentives for the project, though it supports "very tight controls." On June 9, the Lexington-Fayette Urban County Council unanimously initiated a zoning ordinance text amendment process and passed a moratorium on data center development in Lexington, halting permits and zone change requests until at least October 31.
The proposed 20-page draft amendment, released by the city's planning staff, prohibits data centers in agricultural zones and bans any major data centers (larger than 50,000 square feet) from locating anywhere in Fayette County. The city's Planning Commission is scheduled to discuss and potentially act on this amendment, including holding a public hearing, at a July 30 meeting. Due to the moratorium, DartPoints cannot operate without the necessary zoning compliance permit and certificate of occupancy, which they did not obtain before the pause was enacted.