Mercer County Fiscal Court approves data center moratorium

The Mercer County Fiscal Court in Kentucky unanimously approved a temporary 12-month moratorium on data center development, effective immediately. The decision, met with applause from the public, followed an amendment to the initial draft, removing language pertaining to previously filed projects, as no hyperscale data center applications have been submitted in Mercer County. The Harrodsburg City Commission also voted to draft its own data center moratorium, while Judge-Executive Sarah Steele confirmed the county moratorium would be posted online upon adoption.

In a related development, Governor Andy Beshear issued an Executive Order on August 6, aimed at ensuring data centers in Kentucky do not negatively impact ratepayers or the environment. The order requires data center developers to submit an energy plan demonstrating how they will meet energy needs without imposing additional costs on other utility ratepayers. It also directs the Energy and Environment Cabinet to deny permits that would harm air quality, water resources, or natural resources. Developers must also commit to paying full state and local taxes and engaging transparently with local communities about job creation.

Panattoni Development Company, which has confirmed plans for a data center in Mercer County, issued a statement supporting Governor Beshear's executive order. A spokesperson for Panattoni Data Centers stated that the order aligns with their principles of transparency, responsible planning, collaboration with utilities and communities, and investment that strengthens local infrastructure. The company emphasized its commitment to thoughtful planning and open engagement to foster economic growth while protecting electric reliability and supporting communities.