Simpson County moves to regulate data centers amid development debate

FRANKLIN, Ky. (WNKY) – Simpson County officials are moving forward with a proposed ordinance aimed at regulating data centers and large on-site energy systems, as questions remain about a potential development near Franklin.

The ordinance, known as Ordinance 440.70, would limit where advanced technology centers, including data centers, can locate in Simpson County and require additional oversight before any project could move forward. County leaders say the measure is intended to protect residents, infrastructure and the environment as interest in large-scale data centers grows across Kentucky.

Judge executive Mason Barnes said the ordinance is not designed to ban data centers outright but to ensure local governments have a say in how such facilities operate.

“You cannot outright ban the facility altogether, but you could at least require by ordinance that they have to obtain a conditional use permit, where local government has some say in how and when they operate,” Barnes said.

Under the ordinance, data centers and integrated energy systems would be limited to heavy industrial (I-2) zones and would require a conditional use permit before construction or operation. Existing facilities would have 180 days to comply. The ordinance also outlines enforcement measures, including fines of up to $10,000 per day and the potential revocation of permits for violations.

The proposal comes as developers explore a data center project on a large tract of land near Franklin. Barnes said the site is located along Steele Road, off U.S. 31-W, running parallel to Interstate 65 behind existing businesses near the Exit 2 interchange, including Cracker Barrel and an antique store.

According to county officials, TenKey Landco, LLC purchased approximately 529 acres at the site, which was already zoned industrial. About 200 acres of that property were later sold to Kroger for its planned $391 million distribution center, known as Project Wave. The potential data center would be located in the same general vicinity, though it is unclear how much of the remaining acreage would be used.

Barnes said the county has heard far more opposition than support from residents regarding the data center proposal.

“I have not had anyone talk directly to me that says they think it’s a good idea,” Barnes said. “I have had several people talk directly to me saying that they are not in favor of the data center locating here.”

A key turning point in the debate came in October, when the Franklin-Simpson Planning and Zoning Commission rejected proposed text amendments that would have expanded permitted uses in the I-2 zone. Barnes said that decision raised questions about whether the project could proceed as originally envisioned.

Concerns cited by county leaders include energy and water consumption, environmental impact, traffic, noise and emergency response capabilities, particularly whether local fire departments have the equipment needed to handle electrical or energy-related fires. Barnes also pointed to transparency issues, saying developers did not disclose who would ultimately operate the data center and asked him to sign a non-disclosure agreement, which he declined.

“When you’re unwilling to say who is going to be here, that should be a red flag,” Barnes said.

While Barnes said data centers are not completely off the table, he emphasized that any future project would need to meet strict standards.

“Could it happen? Possibly it could,” he said. “But it warrants a long, hard look and some real honesty, truth and transparency about what we’re getting.”

News 40 reached out to Franklin City Commissioner Dale McCreary on Dec. 11 for comment on the data center debate. McCreary declined to comment the following day.