Beshear issues executive order establishing framework for data centers
Kentucky Gov. Andy Beshear issued an executive order establishing new statewide expectations for data center companies, requiring energy plans to avoid increasing electricity costs for ratepayers. The order comes as several counties have enacted local moratoriums, but legislative leaders criticized the move, arguing that lasting policy should be enacted by the General Assembly.
Kentucky Governor Andy Beshear signed an executive order Thursday, implementing new statewide expectations for data center companies operating or seeking to develop projects in Kentucky. The order, issued amid growing interest in large-scale data center developments and local moratoriums across the state, mandates that companies invest responsibly, operate transparently, and demonstrate lasting benefits for Kentucky.
A key requirement of the executive order is that data center developers must submit an energy plan to the Kentucky Energy and Environment Cabinet. This plan must demonstrate how their projects will avoid raising electricity costs for families and businesses. Governor Beshear also directed the Kentucky Public Service Commission (PSC) to prevent utilities from recovering data center-related costs from other ratepayers, a measure aimed at protecting consumers.
The executive action drew sharp criticism from Senate President Robert Stivers, who dismissed it as "political theater" and argued that a lasting framework for data centers should be established through the legislative process, not an executive order. Stivers highlighted the General Assembly's deliberate approach, including coordination with federal delegation members like Congressman Brett Guthrie, to craft comprehensive policies. Previous legislative efforts, such as HB 593 in the 2026 session, which included ratepayer protections, passed the House but failed to advance in the Senate.