Data center developer sues Simpson County over zoning authority
FRANKLIN, Ky. (WNKY) — A company planning a massive data center project in southern Kentucky has filed a lawsuit against Simpson County, arguing the county overstepped its legal authority by passing an ordinance regulating development inside the City of Franklin.
TenKey LandCo I, LLC filed the lawsuit in Simpson Circuit Court challenging a county ordinance adopted in December that restricts the location, permitting and operation of so-called “advanced technology centers,” including data centers and their associated power systems. The ordinance limits those facilities to areas zoned as Heavy Industrial and requires a conditional use permit before any approvals can be issued.
County ordinance 440.70 applies to both incorporated and unincorporated parts of Simpson County. It gives the Simpson County Planning and Zoning Commission authority to impose operational conditions on such facilities, with noncompliant businesses subject to closure.
TenKey plans to develop a data storage and service center with on-site power generation at 421 Steele Road, a property located entirely within the city limits of Franklin.
In its lawsuit obtained by News 40, the company argues that under Kentucky law, the county does not have the authority to regulate zoning or impose operational conditions on property located within the City of Franklin, which has its own independent planning and zoning authority. The company is asking the court to issue a declaratory judgment clarifying that the county ordinance does not apply inside the city.
“This lawsuit seeks to clarify the laws applicable to the project, which is proposed to be built entirely within the city limits,” said Gregory Dutton, an attorney for TenKey, when asked for a statement by News 40. “The county has attempted to exert control over the project in a manner not authorized by law. We are seeking a judicial determination consistent with our understanding and interpretation of the laws applicable to this project.”
Dutton had previously made a similar argument in a statement to News 40 during coverage on Jan. 20, 2026, at the Planning and Zoning commission’s special-called meeting.
“Our proposed project is located in the city jurisdiction of the City of Franklin,” Dutton said at the time. “Therefore, the county ordinance has absolutely no authority over this project.”
According to TenKey, a preliminary concept for the Franklin–Simpson Data Storage and Service Center includes three 200,000-square-foot facilities built over three years on roughly 200 acres near Exit 2 of Interstate 65. Each facility would represent an estimated $1.6 billion investment. If approved, the company says the project could employ 100 to 200 workers with average salaries ranging from $80,000 to $100,000 and generate an estimated $17.68 million in tax revenue.
Simpson County Judge-Executive Mason Barnes said the county is still reviewing the lawsuit.
“I was just recently made aware of the lawsuit filed against the County by TenKey LandCo I, LLC,” Barnes said when asked for a statement by News 40. “I think it is very unfortunate they made the decision to take legal action against us over our ordinance. We will be reviewing this suit with legal counsel to determine what the next steps are.”
The case asks the court to decide whether the county had the legal authority to apply the ordinance inside the City of Franklin and whether the rules can be enforced against TenKey’s proposed project.
