Kentucky lawmakers urged to establish data center regulations
An editorial urges Kentucky to implement robust regulations and safeguards for data center development, citing concerns over massive electricity and water consumption and potential ratepayer burden. The article highlights TeraWulf's recently announced 1GW data center project near Ashland as an example of a development that necessitates new statewide policy.
An editorial published in the Carter County Times argues that Kentucky must establish appropriate guardrails to manage the rapid expansion of the data center industry, particularly with the boom in artificial intelligence. Authors Roger Ford and Erin Petrey point to a significant increase in data center electricity consumption nationwide, projected to reach 12% of all U.S. electricity by 2028.
The editorial emphasizes that this expansion impacts energy, water, and utility rates for Kentucky families and businesses, particularly in Eastern Kentucky, which has historically borne the costs of outside capital. It cites TeraWulf's May 26 announcement of a 1GW hyperscale AI and HPC development at the Muskie Data Campus near Ashland, noting that this project alone would require as much continuous electricity as 750,000 Kentucky homes.
Ford and Petrey contend that Kentucky currently lacks the necessary rules, regulations, and public-interest safeguards for projects of this magnitude. They mention a failed legislative effort in the 2026 session to protect power customers from subsidizing data centers and propose remedies. The authors advocate for the passage of a bipartisan "Kentucky Data Center Responsibility Act" during the next legislative session to prevent tax incentives and utility commitments that could burden existing ratepayers. They also call for the Public Service Commission to establish a large-load tariff for data centers, including demand charges, long-term contracts, and stranded-cost protections, and demand full transparency on ownership, financing, power, and water use.