Kentucky municipalities consider data center moratoriums

Local governments in Kentucky are implementing moratoriums on new data center developments as communities raise concerns regarding environmental impacts, property values, and utility costs. In Mercer County, the Fiscal Court unanimously passed a one-year moratorium on data center applications in unincorporated areas. However, a potential land annexation by the city of Burgin could bypass these restrictions, as the city seeks to double its size to include farmland where a hyperscale data center has been proposed. Because the city lacks specific planning and zoning rules for such facilities, the annexation would leave the project exempt from local zoning laws.

In Louisville, real estate firm Dermody Properties has submitted plans to convert a 350,000-square-foot warehouse in the Rubbertown industrial area into a ‘telecommunications hotel’ facility. The proposal includes adding an electrical substation and repurposing loading docks for generator storage. This submission comes as the Louisville Metro Council prepares to consider its own moratorium on new data center construction pending updates to city regulations.