Beshear to issue executive order to protect against ‘harmful impacts’ of data centers

Democratic Kentucky Gov. Andy Beshear says he’s signing an executive order to protect Kentuckians “against any harmful impacts from potential data centers,” directing the state utility regulator and environmental protection officials to take specific actions on data centers. 

During a Thursday press conference, Beshear said economic wins “can never come at the cost of the health and safety of our families or the communities we call home.” He stood next to Angie Hatton, the chair of state utility regulator Kentucky Public Service Commission, and John Lyons, the secretary of the Kentucky Energy and Environment Cabinet. 

“Any company looking at Kentucky, at minimum, is required to demonstrate they will be good neighbors. They must invest responsibly, operate transparently, and work in partnership with our people and our communities,” Beshear said. “They will be held to the same high standards we demand of any potential partner, and they must prove that their investment will deliver lasting benefits to Kentucky’s working families.”

Beshear said his executive order would direct the Energy and Environment Cabinet, which issues permits to industrial sites that set limits on air and water pollution, to deny permits to any data center site that would negatively impact air quality; water quality, usage and supply; federally protected wetlands and “natural resources”. 

He said data center developers would also have to submit an “initial energy plan” to the cabinet explaining how the developer would protect businesses and residents from rising utility bills while not “imposing any additional costs on our families.” 

The Democrat said the order would also direct the Kentucky Public Service Commission to deny requests from utilities that would increase rates “to recover costs caused by the development or operations of a data center.” 

“The governor’s executive order and his directive are clear. The cabinet simply will not permit, not issue a permit that’s not protective of human health, our natural resources, and the environment,” said Lyons, the Energy and Environment Cabinet secretary. 

Hatton, the chair of the PSC, said it was important for the state to learn lessons from other states “that maybe have not implemented data centers in the most effective way to protect ratepayers.” 

“I’m grateful that we have guidance like this that will provide a framework that allows us, if we allow data centers to develop in our state, that they’re done in a thoughtful and deliberate way, and in a way that allows us to protect Kentucky families and ratepayers of every class,” Hatton said. 

This story will be updated.