The latest debate over data centers is playing out in a small town in southern Kentucky near the Tennessee border.
The Franklin Planning and Zoning Commission rejected a proposal Tuesday night that would amend regulations to allow construction of advanced technology centers, "used primarily for the housing, operation, and management of computer servers, communications, networking equipment, and related technologies," according to the text amendment.
A developer recently purchased land just off Exit 2 on I-65 in Simpson County to build a large-scale data center similar to the one in Gallatin, Tennessee, that serves Facebook parent company Meta.
A deed was recorded on May 15, 2025, in the Simpson County Clerk's Office to TenKey Land Company, LLC and the property was annexed on May 22, 2025. The real estate development firm paid nearly $22 million for 529 acres on Steele Road.
Three 250,000-square-foot facilities would ramp up over a three-year period, each building representing a $2.1 billion investment. Total employment would be around 150 workers earning an average annual salary of $80,000-$100,000. While some of the positions are highly specialized, opponents at the meeting familiar with other data centers said the workforce is relatively small and most employees are hired for lower-paying security positions.
An attorney for TenKey, Tim Crocker, spoke at a public hearing the Planning and Zoning Commission held before taking a vote. Crocker called the proposed project a "generational opportunity" for the region. In similar fashion to a court proceeding, he called a number of experts in site selection, energy, and zoning.
The experts tried to quell concerns about a strain on local resources, saying the data center would have a closed loop cooling system that wouldn't rely on municipality water. There would also be on-site energy generation at the complex that wouldn't rely on electricity from the TVA power grid.
The data center would be powered by natural gas turbines, which concerned Simpson County Judge-Executive Mason Barnes.
"My understanding is, each one of those turbines is about the same decibel level as a passenger jet engine. If you have 10, 12, 14, 16, 18 of those, it's a lot of noise," Barnes told WKU Public Radio. "While natural gas is clean energy, there's no doubt there's still some emissions."
Sharon Hoffman moved to Franklin five years ago from Murfreesboro, Tennessee, and attended Tuesday night's meeting to register her concerns.
"It's just an affordable place to live, and we know growth is inevitable, but this would just be a huge negative for the community," she said. Hoffman added she's also concerned by what she thinks has been a lack of transparency surrounding the project.
No Franklin resident spoke at the hearing in support of the proposed data center, despite TenKey's attorney Tim Crocker telling an overflow audience that the project could increase tax revenue that could build schools, fixing leaking sewers, and improve fire and ambulance services.
"We're supposed to have a new fire truck from The Mint Gaming Hall and it hasn't happened," said Franklin City Commissioner Kelly Bush, who is skeptical the project will be beneficial to the community.
Bush, a 25-year veteran of the IT industry, claimed the only ones financially benefiting from the project would be attorneys and investors.
"I wish you all the best, just not in Simpson County," as he pointed to Crocker and TenKey representatives at the meeting.
Following a raucous, four-hour comment period, planning and zoning members voted unanimously to reject a change in regulations, saying the proposed rezoning language was too vague and needed to allow the city more oversight of projects.
“I am so proud of Franklin and I’m so proud the citizens on the commission stood with the citizens in the room," said local resident Kristen Bailey Wilson.
However, the planning and zoning vote is only a recommendation that will be sent to the Franklin City Commission, which will make the final decision. Dale McCreary is one of two commissioners on the five-member board who has publicly opposed the project.
“We’re in a geographical location that’s very attractive and we have the opportunity to be picky," McCreary told WKU Public Radio. "We’re adjacent to I-65. We have industrial land available. We have some of the lowest property taxes in Kentucky, and I think the commission can be very picky about who we allow to come here.”
The Franklin City Commission's next regularly scheduled meeting is Nov. 10.
Although Kentucky hasn't historically been a prominent data center market, there's been a recent uptick in interest.
Kentucky's largest utility, Louisville Gas and Electric and Kentucky Utilities, is working to meet the demand by seeking permission to build more power plants.
Jefferson County is home to a growing number of data centers, but they're a tougher sell in more rural parts of Kentucky.
Last week, the Meade County Planning and Zoning Commission voted unanimously against rezoning land for a data center near Brandenburg.
Developers in Oldham County withdrew a similar proposal in July and enacted a 150-day moratorium on applications to build data centers.
