Cave City faces lawsuit over data center moratorium
Cave City, Kentucky, is facing a lawsuit from Kentucky Industrial Alliance after the city approved a year-long moratorium on data center development. The developer claims their project application should be reviewed under previous zoning rules, while a city council member defends the moratorium, which also followed resident opposition.
Cave City, Kentucky, is facing a lawsuit from Kentucky Industrial Alliance, a developer proposing a data center project, following the city council's approval of a 12-month moratorium on data center applications and development in May. Council member Leticia Cline, who sponsored the moratorium to allow for research into appropriate city development, expressed surprise at the lawsuit but stands by the council's decision, believing it has legal grounds.
Kentucky Industrial Alliance claims it submitted its development plan before the moratorium and argues it should be reviewed under the zoning regulations in place at the time of filing. The company reportedly owns over 600 acres for the project and has invested approximately $2 million. The lawsuit emerges amidst strong resident opposition to the proposed data center, with Cline anticipating the legal action will only strengthen these sentiments. Spectrum News attempted to contact Kentucky Industrial Alliance for comment, but received no response.