(WKYT) – Gov. Andy Beshear signed an executive order Thursday addressing data center development across Kentucky, as proposals have emerged in multiple counties statewide. In Mercer County, where developers have targeted farmland near Burgin’s city limits, some residents said the order does not go far enough.
“I’m announcing an executive order — that I am signing — to protect against any harmful impacts against any potential data centers,” Beshear said.
What the order requires
The executive order requires data center project developers to submit an energy plan to the Energy and Environment Cabinet demonstrating how the company will protect families and existing businesses from electric rate increases.
The Public Service Commission will be required to prevent utility companies from raising rates to recover costs associated with data centers. Beshear is also directing the Energy and Environment Cabinet to deny permit applications for data centers that would negatively impact air quality, water use, water quality, water supply, federal jurisdictional wetlands or natural resources.
The order further requires data center developers to pay their fair share of state, local and school taxes, and to commit to engaging with transparency in public discussions with local community leaders and residents.
Mercer County residents push back
Chris Walker, a candidate for judge executive in Mercer County, has been a vocal critic of rapid data center development in his community. Walker said the governor’s directive lacks specific enforcement mechanisms needed to hold developers and local governments accountable.
“Andy, I appreciate what you’ve done. I appreciate the gesture that you put forth. But we need more. We have to go further,” Walker said.
Bethany Corea, an organizer for the group We Are Mercer County, said the order leaves a key question unanswered.
“It lays a lot of obligation on the developers — it says very little about what local government is supposed to do,” Corea said.
Walker and Corea said a statewide moratorium would have been better suited to address their concerns.
Developer and state leaders respond
Panattoni, the developer behind the Burgin proposal, said it supports the order.
“Panattoni supports Governor Andy Beshear’s Executive Order 2026-494 because it reflects the same principles that guide our approach to data center development: transparency, responsible planning, collaboration with utilities and communities, and investment that strengthens — not strains — local infrastructure,” a spokesperson for Panattoni Data Centers said.
“These are practices we already embrace on projects across our portfolio. We believe thoughtful planning and open engagement create the certainty needed to deliver long-term economic growth while protecting electric reliability and supporting the communities where we invest,” the spokesperson said.
“We appreciate the Governor’s leadership in advancing a framework that promotes responsible growth and reinforces Kentucky’s economic future, all in keeping with the priorities of the communities of the state,” the spokesperson said.
State Rep. Adam Moore, who previously proposed a ratepayer protection bill, said he agrees with the governor on utility costs, though he believes local communities should still set their own environmental ground rules.
“We are pretty much in lockstep in our ratepayer protection and making sure data centers do pay all of their fees and they can’t weasel out of any locality taxes, occupation taxes,” Moore said.
Legislature signals more work ahead
House Speaker David Osborne said the order appears to include some of the intent of House Bill 593, a data center bill that passed the House this session but died in the Senate. Osborne said the order falls short on accountability.
“It does appear to include some of the intent of House Bill 593, which was approved by the House during this year’s legislative session. However, it seems to be missing any meaningful changes or real enforcement mechanisms to make sure those provisions are followed. Without that accountability, it is unclear how effective the order will be beyond providing guidance for communities that choose to include data centers in their economic development plans. Moving forward, the legislature is committed to providing real protections with HB 593 as a starting point for discussions,” Osborne said.
Rep. Josh Bray, the sponsor of HB 593, said the governor’s order leaves significant work remaining.
“While I appreciate the Governor’s attempt to ensure Kentuckians interests are protected in regard to data centers, there is a lot of work left to do. House Bill 593 was much more thorough and provided far better oversight. I remain committed to working on this issue to make sure Kentucky leads the nation in smart energy and economic development policies. I will have a bill ready to file the first week of session next year,” Bray said.
Moore said he hopes to work with lawmakers on both sides of the aisle next session to pass stronger data center protections into law.
WKYT reached out to Moore’s Republican opponent Killian Timoney and Mercer County Judge Executive Sara Steele. Neither had responded as of publication.