Lawsuit Reveals Cave City Data Center Proposal

Kentucky Industrial Alliance LLC has filed a lawsuit in Barren Circuit Court against the City of Cave City, the Cave City Council, and the Joint City-County Planning Commission. The lawsuit challenges a one-year moratorium on data center development that was enacted by city leaders.

The development company claims it submitted a development plan on May 11 for property at 2001 Doyle Avenue, and that this application was accepted by the Joint City-County Planning Commission before the moratorium was approved. Kentucky Industrial Alliance further alleges that it owns over 600 acres tied to the project and invested approximately $2 million in land acquisition, arguing that the moratorium violates due process and should be deemed invalid.

The moratorium was approved by a 4-1 vote by the Cave City Council in May, following weeks of public opposition from residents concerned about utility demands, environmental impacts, tourism, and the community's character. The lawsuit contends that the moratorium was improperly adopted because it was not reviewed by the Planning Commission and failed to follow statutory notice and hearing requirements. Kentucky Industrial Alliance is seeking to invalidate the moratorium and have its development plan considered under the prior zoning regulations. As of the report, responses from the city and other defendants had not yet been filed.