Beshear signs executive order establishing protections for Kentucky data centers

FOX23 News at 9 p.m

FRANKFORT, Ky., (KBSI) — Gov. Andy Beshear signed an executive order Thursday establishing requirements intended to protect Kentucky utility customers, natural resources and local communities from potential effects of large data centers.

The order requires developers to submit energy plans demonstrating that their projects will not increase electricity costs for other customers. It also directs the Kentucky Public Service Commission not to allow utilities to recover data center-related expenses through higher rates for other customers.

State environmental officials are directed to reject permit applications that would negatively affect Kentucky’s air, water or natural resources.

The order also calls for data center operators to pay applicable local and school taxes and participate in public discussions with community leaders and residents.

“The executive order is going to set a baseline,” Beshear said. “If you cannot meet it, you’re not coming to Kentucky.”

Beshear said local communities should have a role in deciding whether the developments are appropriate for their areas.

The order comes as data center proposals generate debate across Kentucky, including plans for a privately funded artificial intelligence and high-performance computing campus at the U.S. Department of Energy’s Paducah Site.

Categories: News