Beshear issues executive order to protect Kentuckians from data center 'harmful impacts'
Kentucky Governor Andy Beshear issued an executive order to protect Kentuckians from the potential harmful impacts of data centers. The order requires data center companies to submit an energy plan proving they won't raise electricity bills for homes and businesses, and prohibits utilities from raising rates to recover data center costs. It also directs the Energy and Environment Cabinet to deny permits to sites that would negatively impact air, water, or protected lands.
Kentucky Governor Andy Beshear issued an executive order aimed at protecting Kentuckians from potential negative impacts of data centers. The order establishes a framework requiring data center companies looking to build in Kentucky to demonstrate they will be "good neighbors.
Under the new order, companies must submit an initial energy plan to the Energy and Environment Cabinet (EEC). This plan must prove that the data center's operations will not cause an increase in electric bills for nearby residential and business customers. Additionally, the order directs the Kentucky Public Service Commission to prevent utility companies from raising rates to recover costs associated with data centers. Governor Beshear emphasized that the order is designed to ensure that the cost of new power infrastructure, needed to support data centers, cannot be passed on to everyday citizens, stating that families should "not pay a single penny extra.
The executive order also addresses environmental concerns. It mandates that the Kentucky Energy and Environment Cabinet deny permits to data center sites that would negatively affect air quality, water quality, or protected lands.