Andy Beshear defends Kentucky data center order
Kentucky Gov. Andy Beshear is defending an executive order regulating data center development across the state, aiming to protect ratepayers and the environment while allowing projects to proceed with community support. The order requires developers to account for power, infrastructure, and environmental impacts, and prohibits utility rate increases tied to data center costs. Meanwhile, the Louisville Metro Council has advanced a local data center moratorium, and a Panattoni project in Mercer County faces opposition.
Kentucky Governor Andy Beshear is defending his executive order designed to regulate data center development statewide, emphasizing its aim to protect ratepayers and the environment. The order requires data center developers to submit plans to the state's Energy and Environment Cabinet detailing how they will generate necessary power and cover infrastructure costs, ensuring residents do not pay extra. It also prohibits the Public Service Commission from increasing rates due to data center development and allows permit denials if projects negatively impact air or water quality or supply. Additionally, the order prevents data center projects from avoiding state and local taxes.
Republican leaders, including Senate President Robert Stivers, are questioning the order's enforcement power, while State Rep. Josh Bray plans to introduce updated legislation mirroring the order's protections next year. Despite these concerns, Governor Beshear maintains the order has sufficient leverage due to the involvement of multiple state agencies in the approval process.
Separately, data center developer Panattoni, which has faced strong opposition for its project in Mercer County, supports the executive order, stating it aligns with their principles of transparency and responsible development. In Louisville, the Metro Council has also passed a data center moratorium out of committee, awaiting a full council discussion.