Lexington has no regulations for data centers. Could one come to Fayette County?

Lexington, Kentucky, currently lacks specific zoning regulations for large-scale data centers, a situation city officials acknowledge. Susan Straub, a spokeswoman for the city, confirmed that current zoning ordinances do not define data centers and there are no pending applications for such facilities in Fayette County. However, Lexington Fayette Urban County Councilwoman Liz Sheehan plans to propose changes to the city's zoning ordinances this fall to define data centers and designate appropriate industrial zones, citing concerns about their significant energy and water consumption and potential environmental impacts. This move comes as other Kentucky localities grapple with the rapid increase in data center proposals. In Louisville, a planning body approved a 1.6 million-square-foot data center by Poe Companies and PowerHouse Data Centers near Shively, despite strong community opposition. The project moved forward under the outdated classification of a "telecommunications hotel." Meanwhile, Simpson County enacted ordinances restricting data centers to industrial zones and requiring conditional use permits after a controversial proposal, leading to a lawsuit filed by TenKey Land Co LLC against the Simpson Fiscal Court in January 2024, challenging the legality of these new rules. A hearing in that case took place in March. The broader trend indicates that many Kentucky cities and counties are actively updating land use and zoning ordinances to address the growing presence of hyperscale data centers spurred by the demand for artificial intelligence.