Kentucky utility leaders say data center developers should cover project costs
Utility leaders told Kentucky lawmakers that data center developers should pay upfront for studies, transmission upgrades and other infrastructure needed for their projects. They said shifting those costs to developers would protect electric cooperative customers from project risks and higher bills.
Representatives of East Kentucky Power Cooperative and Big Rivers Electric Corporation testified before Kentucky lawmakers in Frankfort that data center developers should cover the full costs associated with new projects. Those costs could include initial studies, transmission planning and infrastructure upgrades needed to serve large facilities.
The utility representatives said requiring developers to pay upfront would protect cooperative members from financial exposure if projects do not proceed or create additional system costs. The discussion came amid a sell-off in technology stocks and renewed questions about the pace and financial risks of artificial intelligence and data center expansion.