Data centers get varying responses across state
Kentucky communities are grappling with data center regulation, with Louisville enacting a moratorium and considering stricter zoning rules. Opposition groups are actively campaigning against projects, while other counties like Woodford have passed outright bans. The state legislature and governor are also addressing the issue amidst ongoing debates and legal challenges.
Kentucky communities are experiencing diverse reactions to data center development, prompting various regulatory responses across the state. In Louisville, a planned hyperscale data center by Poe Companies and PowerHouse Data Centers received local government approval earlier this year, but the city subsequently enacted a temporary moratorium on data center construction. Now, the Louisville Metro Council is working to craft new planning and zoning regulations, particularly for hyperscale facilities, to address concerns over their massive power demands.
Opposition group No Data Center 502, led by Danielle Ray, is actively confronting city leaders, including Mayor Craig Greenberg, advocating for stricter controls or outright bans. The city's planning and zoning commission has advanced stricter regulations, including rezoning requirements for most data center proposals to allow public input. However, groups like the Louisville Climate Action Network, led by Sarah Lynn Cunningham, express concern that current regulations, which ban data centers larger than 500,000 square feet, might be vulnerable to legal challenges if deemed arbitrary. Cunningham suggests regulating data centers based on their impact, such as pollution limits.
Beyond Louisville, Woodford County recently passed an outright ban on data centers, citing a long-standing desire to preserve farmland and strong constituent opposition. In Mercer County, a city council member for Burgin walked out of a meeting to prevent a vote on a proposed data center, while the Mercer County Fiscal Court is also discussing potential regulations. Lexington is similarly holding a special meeting to discuss data center regulations. At the state level, the Republican-controlled legislature and Democratic Gov. Andy Beshear are attempting to regulate data centers, with a progressive think tank highlighting potential loopholes in state law regarding local tax payments. Additionally, a data center developer in Simpson County is using a state housing law to try and dismiss a lawsuit brought by concerned citizens. A Democratic U.S. Senator also recently blocked a bill by Republican Kentucky U.S. Rep. Brett Guthrie aimed at encouraging state utility regulators to make data centers cover their electricity and infrastructure costs.