Gov. Andy Beshear signs new executive order impacting potential data centers

FRANKFORT, Ky. – Stricter guidelines are now in place for data center developers looking to break ground in Kentucky.

Gov. Andy Beshear signed a new executive order Thursday requiring data center developers to submit an energy plan to the Kentucky energy and environment cabinet.

The order also requires developers to ensure their energy needs do not drive-up costs for surrounding communities.

Beshear says as data centers look to invest in Kentucky, developers must do so responsibly, operate transparently and work in partnership with the communities they enter.

“In response to the surging demand for data centers and energy resources across our country I’m announcing an executive order that I’m signing to protect against any harmful impacts from potential data centers,” Beshear said in Thursday’s press conference.

Under the order, utility companies are prohibited from raising rates on existing customers because of the development or operation of a data center.

If developers fail to meet the new requirements, their application to build a data center in Kentucky could be denied.