Data centers in Kentucky

📜 State laws

House Bill 593 (2026): make data centers pay their own power costs (died) · April 15, 2026
HB 593 would have let utilities serve a data center only under a contract that makes the data center pay for the power lines and other upgrades it needs. It added a $75,000 application fee to weed out speculative projects, and tied state tax breaks to following local rules. The House passed it 90-8, but it stalled in the Senate. On the last day of the session (April 15, 2026) the same language was put into Senate Bill 197 and then taken out again before the bill passed. The bill died when the session ended. Source

Senate Bill 330 (2026): limits on secret deals (NDAs) for data centers (died) · March 2, 2026
SB 330 would have stopped local governments from signing secret deals (NDAs) about data centers that hide more than state law allows, made contract terms that override the open records and open meetings laws void, required some project facts (owner, location, incentives) to be made public, and let local officials talk about data center impacts. It was sent to the Senate Committee on Committees on March 2, 2026 and never moved. Source

Senate Bill 319 (2026): clean-up plan for data centers on farmland (died) · March 2, 2026
SB 319 would have made data centers built on farmland file a plan with the Energy and Environment Cabinet for tearing down the site later, backed by a bond. It was sent to the Senate Committee on Committees on March 2, 2026 and never moved. Source

House Bill 775 (2025): data center tax break opened to the whole state · March 27, 2025
In 2025 lawmakers expanded the data center sales and use tax break. Before, only Louisville (Jefferson County) qualified. Now projects anywhere in Kentucky can qualify if they invest enough (see Tax breaks). HB 775 became law without the Governor's signature on March 27, 2025. Source

Governor's Executive Order 2026-494 on data centers · Aug 6, 2026
On August 6, 2026, Governor Andy Beshear signed an executive order on data centers. It says developers must give the Energy and Environment Cabinet an energy plan showing how they will get their power and pay for power lines and other costs so other customers' bills do not go up. It tells the PSC not to let utilities raise rates to cover data center costs. It tells the Cabinet to deny permits for data center projects that would harm air, water use, water quality, water supply, wetlands or natural resources. It also says data centers must pay their fair share of state, local and school taxes and be open with local communities. The Governor said the order does not approve any data center; local communities decide. Senate President Robert Stivers said the rules should come from the legislature, and House Speaker David Osborne said the order lacks real enforcement. Source

💡 Who pays for the power

LG&E and KU: special rate for very large, steady users (Rate EHLF) · Feb 16, 2026
LG&E and KU (Kentucky's largest electric company) created a rate called Extremely High Load Factor (EHLF) for new data centers. Under it, a data center signs a 15-year contract and pays for at least 80% of the power it says it will use each month, even if it uses less. In the rate case settlement, the companies agreed to set the size where the rate starts at 50 MVA and to make sure a company cannot dodge it by splitting into several smaller buildings. The PSC decided the rate cases on February 16, 2026; an industry group lists the EHLF rate as approved then. Source

East Kentucky Power Cooperative: data center rate (Rate DCP) · Oct 30, 2025
On October 30, 2025, the PSC approved a data center rate for East Kentucky Power Cooperative, which serves 16 local co-ops in 89 counties. It applies to data centers using 15 megawatts or more. Data centers over 250 megawatts must bring their own power supply. The PSC changed the plan so every data center contract needs PSC approval, removed the cap on application fees, raised the money data centers must put up as a guarantee, and urged the co-op to hold public meetings with communities early. Source

The PSC approves data center power contracts · Aug 21, 2026
The PSC can approve or reject data center power contracts with the utilities it regulates. Example: on August 21, 2026, it approved a contract between Big Rivers Electric, Kenergy and a TeraWulf company for up to 482 megawatts in Hancock County, after a public hearing there in July. The 5 local co-ops that buy power from TVA are outside the PSC's reach. Source

LG&E and KU bills went up in 2026 · Feb 16, 2026
On February 16, 2026, the PSC approved rate increases: about $8.73 a month (6.54%) for an average KU home and $5.14 a month (4.73%) for an average LG&E electric home. In October 2025 the PSC had allowed LG&E and KU to build two new gas power units, mostly because of expected data center demand. Source

Eastern and northern Kentucky pay rising regional power costs · June 2026
Kentucky Power, Duke Energy Kentucky and East Kentucky Power Cooperative are part of the PJM grid region. PJM's price for reserving power plant capacity rose from $28.92 to $333.44 per megawatt-day between the 2024/25 and 2027/28 auctions, driven partly by data center growth in other states. These costs flow into customers' bills. Source

💵 Tax breaks

Sales and use tax break on data center equipment · March 27, 2025
Data centers approved by the Kentucky Economic Development Finance Authority do not pay sales and use tax on their equipment. The minimum investment (within 5 years) depends on county size: $450 million in counties with 100,000+ people, $100 million in counties with 50,000-100,000 people, and $25 million in smaller counties. Projects investing $450 million or more can get the break for up to 50 years. Source

🤐 Secret deals and public records

Open Records Act: who can ask · 2025
Kentucky's Open Records Act lets any "resident of the Commonwealth" see public records. That includes people who live or work in Kentucky, businesses located or registered in Kentucky, people who own property in Kentucky, someone acting for them, and news organizations. The request must be written and signed, and the agency can ask how you qualify. Source

Open Records Act: 5 business days, then appeal to the Attorney General · Oct 21, 2025
An agency must answer a records request within 5 business days, saying what it will give and, if it says no, which exception applies and why. If it says no or does not answer, you can appeal to the Attorney General for free. The AG's decision can be taken to circuit court within 30 days. Source

Data center records can stay secret until the company goes public · Oct 21, 2025
State law lets agencies keep records about a business's possible new location secret until the business has publicly said it is interested. In 2025 the Attorney General ruled (25-ORD-332) that the City of Maysville could withhold secret deals (NDAs) about a proposed Mason County data center because the company had not been named. Once a company announces its interest, this exception no longer covers the records. Source

No state limits on data center NDAs yet · Aug 6, 2026
A 2026 bill (SB 330) to limit secret deals (NDAs) and require public facts about data centers died without a vote. The Governor's August 2026 order asks developers to be open with communities, but does not ban NDAs. Source

💧 Water

Big water withdrawals need a state permit · Oct 7, 2026
Taking more than 10,000 gallons a day on average from a river, lake, spring or well needs a water withdrawal permit from the Kentucky Division of Water (some uses, like farms and homes, are exempt by law). Source

Governor's order: deny permits that harm water · Aug 6, 2026
The August 2026 executive order tells the Energy and Environment Cabinet to deny permits for data center projects that would harm water use, water quality or water supply. Source

🌫️ Air and generators

Air permits: Kentucky Division for Air Quality · Oct 7, 2026
The Division for Air Quality (part of the Energy and Environment Cabinet) issues air permits, for example for gas power plants and large backup generators. Draft permits are posted online with a 30-day public comment period. You can sign up for permit notices by emailing AIRKentucky@ky.gov. Source

Governor's order: deny air permits that harm the environment · Aug 13, 2026
The August 2026 order tells the Cabinet to deny air permits for data center projects that worsen the environment. In August 2026 an environmental group argued that Kentucky Utilities' proposed 681-megawatt gas plant at the E.W. Brown site in Mercer County should be judged under this order. Source

🙋 How to have your say

Who decides a data center near you · Oct 7, 2026
In Kentucky, cities make zoning decisions inside city limits through the city council. Outside cities, the county fiscal court decides, where the county has zoning. In both cases a planning commission first holds a public hearing and makes a recommendation. In Louisville and Lexington, the merged city-county council decides. Power contracts and special rates are decided by the state PSC; air and water permits by the Energy and Environment Cabinet; tax breaks by the state Economic Development Finance Authority. Source

How a rezoning works · 2014
A request to rezone land goes to the planning commission. It must hold at least one public hearing and send a recommendation (with reasons) to the city council or fiscal court, usually within 60 days (120 days in Louisville Metro; some places allow 90 or 120). Speak at the planning commission hearing: its written findings must summarize what supporters and opponents said. Then the council or fiscal court votes. Source

Appeals: 30 days to circuit court · Oct 7, 2026
If you own property in the same zone and disagree with a final zoning decision by a planning commission, board of adjustment, or city council/fiscal court, you can appeal to the county circuit court. You must file within 30 days. After 30 days, the decision cannot be challenged in court. Source

How to ask for public records · Oct 21, 2025
Send a signed written request to the agency's records custodian (city, county, utility, or state agency). Say you are a Kentucky resident (or how else you qualify). Ask for specific records, like secret deals (NDAs), letters with the developer, or water and power studies. The agency has 5 business days to answer. If it refuses, appeal to the Attorney General. Source

How to comment at the PSC · Oct 7, 2026
Find the case on the PSC public comment page (psc.ky.gov), pick the case number, and type your comment with your name and contact information. The PSC also holds public hearings in some cases, such as the Hancock County hearing on the TeraWulf contract in July 2026. Source

How to comment on an air permit · Oct 7, 2026
Check the Division for Air Quality public notices page. Each draft permit has a 30-day comment period that starts the day it is posted online. Email AIRKentucky@ky.gov to get notices. Source

🧾 Help with your bills

LIHEAP: help with energy bills · Aug 4, 2026
The Low-Income Home Energy Assistance Program is run by Community Action Kentucky with the Cabinet for Health and Family Services. It has winter heating help and a summer cooling payment (in 2026, August 3 to September 11 in all 120 counties, until money runs out). Contact your local Community Action Agency. Source

📞 Who to contact

Kentucky Public Service Commission (PSC) · Oct 7, 2026
Sets rates and rules for investor-owned utilities and most electric co-ops, and approves data center rates and contracts. Takes public comments on each case. Source

Energy and Environment Cabinet · Aug 6, 2026
Runs the Division for Air Quality and the Division of Water. Under the Governor's 2026 order, it receives data center energy plans and reviews permits. Source

Division for Air Quality · Oct 7, 2026
Air permits and public comment periods for power plants and generators. Source

Office of the Attorney General · Oct 21, 2025
Decides open records appeals, and takes part in PSC rate cases for customers. Source

Kentucky Energy Planning and Inventory Commission (EPIC) · June 2026
State commission that studies energy supply and demand, including data centers; published a June 2026 report on data centers in Kentucky. Source

Kentucky General Assembly · Oct 7, 2026
Bill status pages for data center bills. Source