Kentucky Gov. Andy Beshear is cracking down on data centers, announcing Thursday he’s signed a series of regulations into effect via executive order.
Data centers can bring needed investments to Kentucky communities, Beshear said Thursday, but economic wins cannot come at the “cost of the health and safety of our families or the communities we call home.”
Beshear’s executive order does not ban data centers. Decisions around whether or not to allow data centers to be developed will still be up to local communities.
But Beshear’s executive order sets up guidelines to ensure data center developers are “good neighbors.”
Centers must pay their “fair share” of state, local, and school taxes, Beshear said. They won’t be able to raise electricity bills, and utility regulators cannot allow rate increases to cover costs tied to data centers.
In order to have their applications approved, data center developers will also need to meet a number of environmental provisions, including ones around water usage and air quality, per the order.
Finally, data center developers must be willing to act transparently, Beshear said, interacting with the community, answering their questions, and having a “meaningful dialogue” to build trust.
Beshear’s announcement comes months after Kentucky lawmakers ended the 2026 legislative session without passing any data center regulations, leaving local leaders to find their own path forward as interest in data centers—and community pushback—mounts.
A state official said during Thursday’s press conference he believes at least 30 Kentucky communities have implemented data center moratoriums, with more still being considered.
Legislative leaders from both parties seemed supportive of Beshear’s order Thursday afternoon.
“Kentucky is open for investment. However, we are not open to sacrificing our families, resources, or communities to secure it,” Senate Minority Floor Leader Gerald Neal, a Democrat, said in a statement.
Senate President Robert Stivers, a Republican, said in a statement Thursday afternoon “it’s about time the governor came around to the legislature’s way of thinking,” adding that “if data centers require new infrastructure, the developers, not Kentucky ratepayers, should bear the cost.”
But Stivers challenged Beshear’s method of using an executive order, rather than working through the legislature.
“If we’re going to establish a lasting framework for data centers, it should be done the right way, through the legislative process, with input from all involved parties,” Stivers said. “That’s how you produce sound policy that protects ratepayers, respects communities and provides certainty for businesses investing in Kentucky.”
Stivers said the GOP-dominated legislature is working with Kentucky’s federal delegation “to ensure Kentucky’s policies complement, not conflict, with federal efforts.”
Help us report on data centers by filling out Hellbender Newsroom’s survey about how your community is responding to data centers and how you feel about them.
This story has been updated.
