A former data center executive is leading efforts in Kentucky to safeguard the industry's inevitable growth. Absent state or federal regulations, counties are defending their resources and local control against major developers.
A former insider to the data center industry says Kentucky needs a moratorium on the industry until state regulations are in place.
Erin Petrey, a Democratic candidate for Congress in central Kentucky, is leading a non-partisan initiative to get legislation filed for the 2027 General Assembly.
Petrey is a former employee of Amazon Web Services, the largest operator of data centers in the world. Much of her work focused on making the industry more sustainable.
Data centers are warehouses filled with many computers that handle internet traffic, whether that's sending emails, streaming a movie, or chatting with an AI agent.
Petrey says data center developers often target poor, rural areas with abundant land and water, and cheaper energy.
As a self-proclaimed sustainability evangelist, Petrey is concerned by what she calls the "unfettered proliferation" of data center projects in the Bluegrass State.
“We are seeing them go county to county trying to dump life-changing sums of money and they’re really being predatory on these populations," Petrey told WKU Public Radio. "Every single locality in every county is pretty much being asked to fend for itself in the absence of any other type of meaningful regulation.”
Petrey recently addressed the Mercer County Planning and Zoning Commission against a proposed ordinance that would allow a new data center development. No formal re-zoning or site plans have been approved so far.
While developers promise millions of dollars in local tax revenue, Petrey argues that without regulation, data centers also consume massive amounts of energy and water while creating noise and environmental pollution.
As of April, no U.S. state has passed a moratorium on data centers, but several cities and counties have banned new data center projects over the past year. At least a dozen states, including Kentucky, have proposed legislation to pause construction, study energy impacts, and reconsider tax incentives.
Legislation was filed in this year’s General Assembly to require data centers to cover their own infrastructure costs and prevent rate hikes for local residents, but the measures stalled.
Petrey is working with state lawmakers to draft a bill next session that would place an indefinite moratorium on data centers in Kentucky until state regulations are in place for profit-driven corporations.
“Their number one driver of being more sustainable, which means being a better steward of critical resources like energy, water, and critical raw materials, is government regulation," added Petrey.
Until then, Petrey is asking federal, state, and local candidates, as well as elected leaders to sign a pledge to support a moratorium, refuse donations from data center developers, and commit to more regulation.
Petry is in a crowded field of Democrats hoping to flip the 6th District congressional seat in central Kentucky. The seat currently belongs to Republican US Rep. Andy Barr who is seeking election to the US Senate.
Former Kentucky House Democratic caucus chair Cherlynn Stevenson, former Lexington council member David Kloiber, and former federal prosecutor Zach Dembo are among the most notable in the seven-way Democratic primary.
Republicans are also lining up to replace Barr. State Rep. Ryan Dotson and Dr. Ralph Alvarado, a former state senator, are the top contenders among five candidates in the GOP primary.
Petrey hopes her statewide efforts are a launch pad for a federal moratorium.
U.S. Senator Rand Paul thinks data center regulation should remain a local issue.
"In one of the counties up near Louisville, they've been protesting they don't want a data center. The neighboring county might be very rural and want a data center because they don't have much business," Paul told WKU Public Radio. "I don't think the federal government should tell you that you have to have a data center, nor should the federal government tell you that you can't have a data center."
Sen. Bernie Sanders (I-VT) and Rep. Alexandria Ocasio-Cortez (D-NY) introduced the Artificial Intelligence (AI) Data Center Moratorium Act in March.
“AI and robotics are creating the most sweeping technological revolution in the history of humanity. Congress is way behind where it should be in understanding the nature of this revolution and its impacts,” Sanders said in a news release. “Bottom line: We cannot sit back and allow a handful of billionaire Big Tech oligarchs to make decisions that will reshape our economy, our democracy and the future of humanity."
Absent federal and state safeguards on data center operations, counties are attempting to asset more local control.
A Simpson County ordinance is currently being challenged that would require a data center developer to get a conditional use permit before moving ahead with a project off I-65 in Franklin.
Petrey says local regulations are a good first step, but state regulations are necessary.
“Because one county might not have, frankly, elected officials who want to create those type of ordinances because I don’t know what they’re getting promised in the background," Petrey said.
Data center developers often ask local leaders to sign non-disclosure agreements, and the lack of transparency is a chief complaint among opponents.
TenKey LandCo, LLC is challenging the ordinance that would give Simpson County more oversight of the proposed data center's operations.
The Franklin Planning and Zoning Commission approved a preliminary development plan in March for a $1.6 billion data center with on-site power generation. Last month, a local citizens group filed a lawsuit challenging the approval process, alleging it was improper.
For now, "all politics is local" when it comes to data centers. Their skeptics are seeking state and federal regulations for inevitable, but responsible growth.
