Governor Beshear orders stricter screening of Kentucky data center projects

Kentucky Gov. Andy Beshear has ordered stricter screening requirements for data center projects, including reviews of power needs, environmental impacts, taxes and community benefits.

Robert Fields | WVOW News

FRANKFORT Kentucky Governor Andy Beshear has issued an executive order establishing new requirements for screening data center projects.

The order takes a three-pronged approach involving potential impacts, tax payments and relationships with local communities. Under the order, data center developers must submit a plan to the Energy and Environment Cabinet addressing their power needs and potential impacts on residential ratepayers.

The cabinet has been directed to deny applications that would pollute land, water or other natural resources. The order also prevents state regulators from increasing rates to recover costs associated with data centers. Data centers will also be required to pay state and local taxes while providing greater transparency.

Beshear says companies seeking to operate in Kentucky must demonstrate they will be responsible partners with communities.

The order does not affect decisions made at the local level regarding data center operations.

PHOTO | Governor Andy Beshear