Data centers are being proposed – and sometimes approved – all over state

Ever since Kentucky lawmakers approved statewide sales tax breaks for hyperscale data centers, developers are eyeing the state as a place to build these potentially massive, electricity-intensive operations.

The state has long been home to smaller data centers that power various online services such as digital cloud storage. But with the surge of billions of dollars of artificial intelligence investment from technology companies, expansive data centers coined as “hyperscale” that can consume a similar amount of electricity as an entire power plant have been proliferating across the country.

While smaller data centers generally have an electricity capacity of 1 to 5 megawatts, hyperscale data centers can consume at least 100 megawatts of power, if not significantly more. For example, an undisclosed company looking to build a hyperscale data center in Mason County would use an enormous 1.2 gigawatts of electricity; the coal-fired Hugh. L. Spurlock Generating Station in that county can produce, at max capacity, roughly 1.3 gigawatts.

Some counties and cities have pushed back against data center development by passing temporary bans on data center permits and construction, responding to concerns from residents over the high electricity usage, potential water usage and noise concerns. Developers and some local elected leaders have advocated for the projects, pointing to a potential boon in local tax revenue.

The hyperscale data center projects are organized by stage of development: Speculated, Planned, and Operating.

One type of data center is located nearby in Wolfe County. A company has operated a data center to mine Bitcoin in an unincorporated part of Wolfe County since 2023.