Gov. Andy Beshear announced on Thursday that he has signed an executive order to protect against any harmful impacts from potential data centers that are built in Kentucky.

Beshear said he issued the order in response to the surging demand for data centers.

“This establishes the framework to ensure that data center companies looking to do business in Kentucky, which will ultimately be a very local decision of whether to welcome them, but that any company wishing to locate in Kentucky is required to demonstrate they will be good neighbors.”

The executive order requires data center project developers to submit an energy plan to the Energy and Environment Cabinet (EEC) showing how the company will protect Kentucky families and current businesses by not raising electric bills. The executive order also requires the Public Service Commission (PSC) to prohibit utility companies from increasing rates to recover costs caused by the development or operations of a data center.

The Governor also directed the EEC to deny any permitting applications where a data center would negatively impact air quality, water use, water quality, water supply, federal jurisdictional wetlands or natural resources. Additionally, the Governor’s order requires that any data center project developer must pay their fair share of state, local and school taxes.

Beshear’s executive order also requires data center developers to commit to engaging with transparency in public discussions with local community leaders and residents.

“To be clear, this order doesn’t say yes to any data center – that’s up to the local community,” Beshear noted. “But it does say no to any center not meeting the requirements. Local leaders and residents know their communities best. I trust their judgment when it comes to significant projects like these. And you can be sure that I will be actively monitoring any and all data center projects that move forward, because Kentucky is our home. We want to make sure it continues to provide for us, our children, our grandchildren and generations of Kentuckians to come.”

He also pointed out this offers protection to Kentuckians “to ensure that no data center causes a detrimental impact on their power bills, or the environment.”