Gov. Beshear: Data Centers must cover their energy costs
FRANKFORT, Ky. (WNKY) – Gov. Andy Beshear says Kentucky will not approve data center projects that shift energy costs onto residents, as proposed developments in multiple counties across the commonwealth continue to generate questions from local communities.
Speaking Tuesday during a medical cannabis program update, Beshear acknowledged concerns surrounding large-scale data center projects, particularly as discussions about artificial intelligence and future energy demands become increasingly prominent.
“I understand anybody’s hesitancy or wanting more information when there’s just a massive project of any type,” Beshear said.
The governor emphasized that any data center seeking to locate in Kentucky would be required to cover the full cost of its energy consumption and any new power generation needed to support its operations.
“I’m not going to let one come to Kentucky that would pass along the cost of energy to the people of that region,” Beshear said. “Any data center that wants to look at Kentucky is going to have to pay for 100% of its own energy.”
Beshear also said prospective projects must comply with all state environmental regulations and demonstrate that they will not cause environmental harm.
The comments come as residents in Boyd and Greenup counties weigh the potential impacts of a proposed data center development. Concerns raised by some community members have included electricity demand, environmental effects and the long-term footprint of the facilities.
While acknowledging those concerns, Beshear pointed to the potential economic benefits large-scale projects can bring.
He said data centers could generate significant tax revenue for local governments and school districts, potentially helping fund transportation projects and educator pay increases.
“All these things are balancing,” Beshear said. “Yes, we have concerns about energy prices and we’ve got to address those.”
Beshear referenced developer TeraWulf, which has been involved in discussions surrounding the proposed project, saying company representatives have so far answered questions in a positive manner. However, he stressed that continued scrutiny is necessary.
The governor encouraged residents to participate in public meetings and remain engaged throughout the process.
“Make sure that in addition to talking and expressing any concerns, we also listen,” Beshear said. “There are instances where these aren’t going to be right for communities and there are instances where it could be a net positive.”
Beshear said the state plans to evaluate each proposal individually, balancing economic opportunities against community and environmental concerns.
“I just want to be pragmatic about each and every one of them,” he said.
