Education, data centers and more: Here’s what Kentucky lawmakers advanced this week

The Kentucky General Assembly is nearing the close of its 2026 session, actively advancing a range of bills, including significant legislation concerning data center development. Senate Bill 197, which initially focused on rural economic development tax credits, has been amended to incorporate new "guardrails" for data centers. The legislation aims to ensure that the substantial costs associated with new utility infrastructure, needed to serve energy-intensive data facilities, are not transferred to existing ratepayers. Under the provisions of Senate Bill 197, large data center customers would be required to sign a contract agreeing to cover any transmission or infrastructure costs incurred by public utilities to provide them service. Additionally, these data centers would need to abide by local zoning rules to be eligible for generous state tax incentives. Louisville Gas & Electric and Kentucky Utilities, the largest electricity providers in the state, have expressed opposition to certain elements of the bill. Concurrently, House Bill 593, which was the original data center-specific legislation, has also begun to advance through the Senate.