Kentucky counties struggle with how to regulate data centers

Kentucky counties struggle with how to regulate data centers

News ClipForward Kentucky·Louisville, Jefferson County, KY·8/16/2026

Kentucky counties are grappling with how to regulate data centers, with no statewide framework in place. The Kentucky Resources Council has developed a new zoning classification system and conditional use permit model to help local governments address issues like noise, water, and energy consumption. Louisville is currently considering an ordinance to regulate data centers based on size, which has drawn criticism.

zoningoppositionenvironmentalgovernmentelectricitywatermoratorium
Gov: Bell County, Louisville Metro Government

Kentucky counties are struggling to regulate the burgeoning data center industry, prompting the Kentucky Resources Council (KRC) to propose a new zoning framework. Ashley Wilmes, executive director of the KRC, highlighted the lack of statewide regulation, leading local governments to classify data centers under inappropriate zoning categories, such as service establishments meant for laundromats and hair salons, as seen in Simpson County.

The KRC's proposed model ordinance includes a new zoning classification and a conditional use permit system designed to maximize public input. This framework aims to address critical concerns like noise pollution from cooling systems and backup generators, the discharge of contaminated cooling water, and the significant energy and water consumption that impacts ratepayers and local resources.

In Bell County, residents' activism successfully led to a two-year moratorium on data center construction. Meanwhile, Louisville city leaders are considering a new ordinance that would ban data centers larger than 500,000 square feet and require conditional use permits for smaller facilities. Wilmes criticized Louisville's proposed size-based approach, arguing it fails to account for the intensity of use, which is a greater determinant of noise, pollution, and resource demands. The final public hearing on Louisville's proposed ordinance recently concluded.