Kentucky Governor issues executive order to regulate data center impacts

Kentucky Governor Andy Beshear has issued an executive order aimed at limiting the potential negative impacts of data centers on the state. The order directs agencies, including the Kentucky Public Service Commission and the Energy and Environment Cabinet, to prevent negative environmental impacts and deny utility rate increases linked to these facilities. While Beshear maintains the order is fully enforceable, some observers question its effectiveness without specific supporting state legislation.

In response to these regulatory shifts, Maryland-based developer TeraWulf has submitted an energy plan to state regulators for its Justified Data Campus project in Hancock County. The project, which includes a 20-year contract with AI developer Anthropic estimated at $10 billion, is being built on the site of a former aluminum smelter. TeraWulf claims the facility will have minimal environmental impact, consuming less water and emitting fewer pollutants than the previous plant, while maintaining similar electricity usage.

Local residents have expressed concerns regarding water consumption, air and noise pollution, and potential increases in electricity bills. Despite this opposition, TeraWulf’s filing included a letter of support from Hancock County Judge-Executive Johnny Roberts and noted the potential creation of 1,000 construction jobs.