08/14/2026
Gov. Beshear issues Executive Order on Data Center Development
Kentucky Governor Andy Beshear signed an executive order on Aug. 6, establishing a strict screening process and development restrictions specifically tailored to data center projects across the Commonwealth.
The executive action requires any incoming data center developer to fulfill the three following requirements:
1. Ratepayer & Environmental Protection - developers are required to submit a comprehensive energy plan to the Kentucky Energy and Environment Cabinet (EEC). This plan must demonstrate that the significant power requirements of the data center will not lead to higher electric bills for nearby residents or existing businesses.
The order also instructs the Kentucky Public Service Commission to prohibit utility companies from increasing rates to cover costs associated with data center infrastructure. Furthermore, the Energy and Environment Cabinet (EEC) is directed to refuse permits for any facility that has a detrimental impact on air quality, water supplies, wetlands, or natural resources.
2. Full Tax Compliance - developers are required to fully comply with tax obligations by paying their fair share of state, local, and school taxes. The order prohibits data center companies from trying to evade local tax structures that directly support schools and community services.
3. Community Transparency - data center companies must engage in transparent discussions with local leaders and residents. They should openly address community questions, including details about job creation and the specific impacts of their facilities on the region.
The order specifies that its provisions will not affect local communities' decisions about operating data centers in their jurisdiction.
According to the order, Beshear's office will monitor data center projects for compliance.
