DATA CENTERS AND KENTUCKY
Just like King George forced colonists to house soldiers without consent, today’s unchecked data center deals can force communities to bear the costs on roads, water, and public safety without a real say. Back then, it was taxation and quartering without representation. Now, it’s infrastructure strain and environmental risk without accountability. The lesson remains: no burden without consent, no cost without compensation. Communities deserve the right to set the terms, fair, transparent, and binding, just like the founding principle of self-governance demands.
Slow down. A moratorium doesn’t halt progress; it gives local governments time to develop sound zoning rules for data centers, including requirements for setbacks, noise, water use, generators, and stormwater management.
No nondisclosure agreements. A project that will use public water, public roads, should not be negotiated under a nondisclosure agreement. The developer, not its consultant, should appear by name before the fiscal court or council votes.
Hire an independent analyst. Take nothing at face value and require the developer to hire an independent analyst, paid for by the developer, to verify every claim. In Kentucky, some developers have downplayed impacts or inflated job promises, so having a neutral expert ensures communities get the full picture, not just the sales pitch.
No Promises only obligations. Hold companies accountable with enforceable job and wage commitments, tied to tax breaks. If the jobs don’t materialize, the abatement vanishes. Include local hiring and apprenticeships for electricians, pipefitters, and plant operators at community colleges. And make all obligations binding on future owners—because the company cutting the deal today might not be around tomorrow.
Electricity agreement in the contract. Kentucky’s already started, on August 21, the PSC approved a deal where the data center pays for its own power, protecting ratepayers. Every project should have that kind of approved contract. People can watch the PSC docket in Frankfort like a courthouse calendar, because that’s where the real decisions on money happen.
Water use contract. Require the agreement to establish a developer-funded water protection fund with a clear contribution cap. Include ongoing monitoring and prioritize household and agricultural access during droughts so data centers do not leave communities without water.
Plan for the end on day one. Kentucky’s Senate Bill 319 would’ve required data centers on farmland to have a decommissioning plan and a financial bond—so taxpayers don’t inherit a broken-down site. Counties can do this now. Make developers pay for road damage, fire equipment, and training for handling fuel and batteries. And require a yearly public report on real jobs, taxes, and utility use. Verifying it is actually delivering.
Tax Demand. Make data centers pay their fair share a per-megawatt-hour tax, paid directly to the host county, would fund the roads, schools, and water systems they strain. If the industry threatens to leave, tell them to go, Kentucky’s not desperate. They’re here because Northern Virginia is tapped out. Let’s not repeat the coal extraction past, this time, make the deal work for the people of Kentucky.