Beshear to sign data center-related executive order
Kentucky Governor Andy Beshear announced he is signing an executive order aimed at regulating data center development in the state. The order requires developers to submit energy plans, prevents utility rate hikes for data center costs, and mandates environmental protection. It also emphasizes local community decision-making and requires developers to pay fair taxes and engage transparently.
Kentucky Governor Andy Beshear is set to sign an executive order on Thursday in response to the growing demand for data centers and energy resources within the state.
The order aims to safeguard against potential negative impacts from data centers and empower local communities to have the final say on such projects. Key provisions include requiring data center developers to submit an energy plan to the Energy and Environment Cabinet, demonstrating how their operations will avoid increasing electricity costs for residents and businesses. Additionally, the Public Service Commission will be mandated to prevent utility companies from raising rates to recover costs associated with data centers.
Governor Beshear is also directing the energy cabinet to deny permits for data centers that would adversely affect air quality, water use, water quality, water supply, federal jurisdictional wetlands, or natural resources. The executive action further stipulates that data center project developers must pay their fair share of state, local, and school taxes and commit to transparent public engagement with local leaders and residents.
Beshear emphasized that the order does not approve any data center automatically, leaving that decision to local communities, but rather prohibits any project that fails to meet the outlined requirements. He stated his intention to actively monitor all data center projects moving forward to ensure they benefit Kentucky's future generations.