With better technology, Kentucky can’t afford to chase data centers away | Opinion

In an opinion piece for the Lexington Herald Leader, Andrew McNeill, President and Senior Policy Fellow at the Kentucky Forum for Rights, Economics & Education (KYFREE), argues that Kentucky must not deter data center development. McNeill contends that despite apprehension, data centers represent essential infrastructure for major economic shifts, such as the rise of artificial intelligence and quantum computing, comparing current opposition to historical Luddite movements against industrialization. McNeill addresses and refutes common criticisms leveled against data centers, asserting they do not raise electricity rates, citing a base-rate reduction for American Electric Power's Indiana customers due to load growth from large customers like data centers. He also dismisses concerns about water strain, highlighting Kentucky's abundant water resources and the potential for technological advancements like closed-loop cooling and water recycling to mitigate usage. Furthermore, McNeill emphasizes that data centers create thousands of skilled, well-paying jobs and attract related industry clusters. The article focuses on the ongoing 2026 legislative session in Kentucky, specifically a bill sponsored by State Representative Josh Bray, R- Mt. Vernon, aimed at providing state-level protections for electricity ratepayers. While acknowledging the consensus that technology giants should pay their fair share, McNeill criticizes the current version of Bray's bill for its 'one-size-fits-all' approach, which he deems inconsistent with the White House's recently signed Ratepayer Protection Pledge. He urges the Senate to modify the bill to account for the diverse ways utilities provide power. McNeill concludes by advising Frankfort to adopt a 'do no harm' approach, similar to Indiana's recent legislative session, which has attracted $23 billion in combined investments from companies like Amazon, Google, and Meta. He emphasizes that securing initial data center investments is crucial for fostering subsequent job creation and economic growth in the state.