(LEX NEWS) — Data center proposals keep emerging across Kentucky, and many communities want to keep them out.
In 2025, Kentucky passed a law making the state more attractive to companies looking to build data centers. The state now offers large tax breaks for data center projects across the state, exempting them from sales and use taxes on certain equipment.
However, some neighbors have expressed frustration with state and local governments, stating officials are moving too quickly to get data center projects approved. Those frustrations were recently brought to Gov. Andy Beshear. He said Kentucky will be strict on data center projects.
"We are also walking into any and all of these [project proposals] skeptical," he said.
Beshear said he will not allow a data center to come to Kentucky if it would pass energy costs along to people in the surrounding region.
"I'm not going to let one come to Kentucky that would pass along the cost of energy to the people of that region. We are not going to do that," Beshear said.
"Any data center that wants to look at Kentucky is going to have to pay for 100% of its own energy, and if it needs new means of production, it needs to pay for those too," Beshear added.
There is currently no law that protects Kentuckians from having their energy bills increase because of data center projects. Earlier this year, a bill that would have set up guardrails to protect existing utility ratepayers failed in the state General Assembly.
Beshear is urging communities facing data center proposals to attend meetings and voice their concerns, but he said to stay open-minded. Beshear said that some communities could benefit significantly from the tax revenue.
"Yes, we have concerns about energy prices, and we've got to address those. On the flipside, it could double the budget of many of our public school systems. It could help provide raises for teachers and educators. It could ensure we have money for transportation," he said.
"What I ask is that people attend the meetings and make sure that in addition to talking and expressing any concerns, we also listen, because there are instances where these aren't going to be right for communities, and there are instances where they can be a net positive," Beshear added.
