With more data centers on the horizon, communities worry about rising electricity bills
Residents in Hancock County, Kentucky, expressed strong concerns about the potential for increased electricity bills due to a proposed TeraWulf data center in Hawesville. The Kentucky Public Service Commission is reviewing TeraWulf's power contract, while Governor Andy Beshear issued an executive order to ensure data centers cover any associated electricity cost increases.
On a hot July evening, the Kentucky Public Service Commission convened at Hancock County High School to discuss a data center project in Hawesville, the county seat. Over a dozen residents, including retiree Gary Elder and expectant grandmother Christie Compton, expressed strong opposition, primarily citing fears of escalating electricity bills and concerns for future generations' ability to afford living in the area. Many residents felt blindsided by the project, noting the land was sold before they were aware of the development.
The project, TeraWulf's Justified Data Campus, is slated for an idled aluminum smelter site in Hawesville and plans to employ approximately 100 workers and generate substantial tax revenue. TeraWulf, a Maryland-based developer, secured a 20-year tenant contract with AI company Anthropic. Chairman and CEO Paul Prager stated that Kentucky's power infrastructure, business environment, and engagement from state and local stakeholders make it an attractive location. The data center is projected to draw nearly 500 megawatts of power, equivalent to the former aluminum plant.
The Kentucky PSC's role is to approve or reject TeraWulf's power contract with regional electric cooperative Big Rivers and local utility Kenergy. Despite Big Rivers signing President Donald Trump's Ratepayer Protection Pledge, residents remain skeptical, pointing to instances nationwide where data centers have led to increased electricity rates. Kenergy spokeswoman Leslie Barr asserted that existing customers would not subsidize data centers, and the co-op supports contracts that stabilize rates. However, Jamie Van Nostrand, former chairman of the Massachusetts Department of Public Utilities, suggested that data centers generally cause higher rates due to the need for new generation and transmission.
In response to growing concerns, Governor Andy Beshear signed an executive order on August 6, aiming to ensure that data centers, not residents, bear any increases in electricity costs. While the Kentucky House of Representatives approved similar legislation this year, it stalled in the Senate. The article also mentions TeraWulf's plans for an even larger Muskie Data Campus in Boyd and Greenup counties, projecting to double its size to 2 gigawatts.