Cave City officials divided over data center moratorium decision

The Cave City Council in Kentucky recently voted against proposed zoning amendments concerning data centers and simultaneously enacted a yearlong moratorium on data center permits. This action follows a prior vote by the Cave City Planning and Zoning Board, which had favored the amendments, but lacked final approval from the city council. The decision directly impacts Discovery, a data center developer that has expressed interest in building a facility in Cave City. Councilwoman Leticia Cline highlighted concerns about the original amendments, stating they would have made data centers a permitted use without requiring a conditional use process, which would allow for public input and clearer developer disclosures. Cline also pointed to vague language regarding water use and a lack of specifics on infrastructure impacts, job creation, or potential tax incentives. She emphasized that the one-year moratorium will allow the city to develop proper regulatory language, inform the public, and ensure alignment with the city's comprehensive plan. Opponents of the data center project voiced worries about excessive water usage, strain on the power grid, and potential adverse effects on the local karst region, including Mammoth Cave National Park. Cave City Mayor Dwayne Hatcher, while acknowledging limited knowledge of data center operations, believes newer facilities have improved energy and water efficiency. He stressed his commitment to protecting the community from negative impacts and had advocated for proactive safeguards through restrictions and guidelines, rather than an outright moratorium. Hatcher expressed that he wasn't in favor of the moratorium but agreed that more information was necessary for informed decisions. He believes data centers are likely to establish themselves in the broader region and that Cave City should control what happens within its boundaries with appropriate guardrails. The Cave City Council is scheduled for a second reading on the moratorium, with both sides hoping the coming year provides clarity before any definitive decisions are made. A special-called meeting is set for May 18.