Lexington Council Debates Data Center Regulations, Extends Moratorium
The Lexington-Fayette Urban County Council is discussing how to regulate data centers in the city, following the unexpected acquisition of the former Lexmark property by a developer. The Council enacted a moratorium on data center development until October 31 and is now considering proposed zoning ordinances from the Planning Commission. These ordinances aim to restrict data center size, energy capacity, and location to address environmental and operational concerns.
The Lexington-Fayette Urban County Council is actively debating regulations for industrial solar projects and data centers, amidst public controversy over the city's use of Flock cameras. Regarding data centers, the council enacted a temporary moratorium in June, effective until at least October 31, after a data center developer unexpectedly acquired the former Lexmark property. This acquisition prompted the council to expedite its process for updating zoning laws to better regulate modern data centers.
Following this, the local Planning Commission developed draft zoning updates, which involved extensive public comment. The initial draft proposed a complete ban on data centers in agricultural zones and limited "minor data centers" (under 50,000 square feet) to certain commercial and industrial zones as a conditional use, subject to environmental and operational standards. The Planning Commission later recommended further revisions, capping minor data centers at 40,000 square feet and 25 megawatts of energy capacity. The Lexington-Fayette Urban County Council is now tasked with deciding on these proposed zoning changes, with some members seeking a balance between allowing smaller server rooms and restricting large-scale hyperscale facilities that have generated public concern.