Beshear takes executive action on Kentucky data centers to prevent 'harmful impacts'
Kentucky Governor Beshear has issued a new executive order to regulate data center development in the state. The order aims to prevent data centers' energy demands from raising electricity bills and requires developers to file energy plans, cover project-related costs, and undergo environmental reviews. Local communities retain final decision-making power over projects.
Kentucky Governor Andy Beshear has signed an executive order designed to establish ground rules for data center operations across the state. The order's primary goal is to prevent the substantial energy demands of data centers from increasing residents' electric bills.
Under the new executive order, data center developers are mandated to submit energy plans, cover all project-related expenses, and successfully complete reviews to safeguard Kentucky's water, air, and natural resources. Governor Beshear emphasized that these are not mere suggestions but mandatory requirements, stating that companies unable to meet them will not be permitted to operate in Kentucky. He also urged developers to engage transparently with local communities to gain their approval.
The order further requires developers to pay their equitable share of taxes and conduct transparent public discussions regarding their projects, while affirming that local communities maintain the ultimate authority over approving any proposed data center developments. Senate President Robert Stivers, while supporting the principle that developers should bear infrastructure costs rather than ratepayers, criticized the Governor's action as "political theater" rather than a necessary legislative step.