Guest columnist: Kentucky can’t afford to chase data centers away

Andrew McNeill, President and Senior Policy Fellow at the Kentucky Forum for Rights, Economics & Education (KYFREE), advocates for Kentucky to support data center development, framing the current pushback as a historical pattern of apprehension towards technological advancement. He argues that the state cannot afford to deter these vital infrastructure investments, essential for the future of artificial intelligence and quantum computing. McNeill systematically addresses three common concerns raised by data center critics: that they raise electricity rates, strain local water supplies, and do not create good jobs. He cites American Electric Power's base-rate reduction for Indiana customers due to load growth from large consumers, including data centers, and a Washington Post article challenging the link between data centers and rising electricity prices. Regarding water, McNeill highlights Kentucky's abundant water resources and the potential for technological advancements like closed-loop cooling and water reuse to minimize consumption. For jobs, he points to thousands of skilled labor positions and high-paying permanent roles, citing Amazon's data center technician salaries in Ohio as an example, and emphasizes the economic benefits of industry clusters that follow anchor investments. The columnist also delves into the current legislative session, noting a consensus that technology giants should pay their fair share for energy. He discusses legislation sponsored by Rep. Josh Bray, R-Mt. Vernon, aimed at providing state-level protections for electricity ratepayers. McNeill cautions that the current version of the bill may be too rigid, inconsistent with pledges like the White House's Ratepayer Protection Pledge, and suggests that the Senate should introduce changes to ensure nuance and flexibility in policy. He urges Frankfort to emulate Indiana's "do no harm" approach, which has attracted $23 billion in combined investments from Amazon, Google, and Meta. McNeill concludes by asserting that transformational investments are critical for Kentucky's economic future and that the fears perpetuated by data center critics are unfounded.