The Kentucky Energy Planning and Inventory Commission (EPIC) released its first comprehensive policy analysis Thursday, examining the opportunities and challenges associated with large-scale data center development across the state.
The report, "Data Centers in Kentucky: Policy Analysis for the General Assembly," provides lawmakers, regulators, utilities and stakeholders with an in-depth review of Kentucky's growing data center pipeline and identifies strategies to support economic development while maintaining reliable, affordable electricity for Kentucky families and businesses.
Commission leaders said the report demonstrates that Kentucky is uniquely positioned to compete for data center investment because of its low industrial electricity rates, available land, abundant water resources, growing fiber infrastructure and proven record of supporting major economic development projects.
"Kentucky has an incredible opportunity before us," said Senate Majority Caucus Chair Robby Mills, R-Henderson, who sponsored the bill creating EPIC. "The growth of artificial intelligence, cloud computing, advanced manufacturing, and digital infrastructure is creating demand for new data centers across the country. EPIC’s report shows Kentucky is well-positioned to compete for those investments while ensuring existing ratepayers remain protected and our electric grid remains reliable."
The report notes that utilities across Kentucky are already seeing significant interest from data center developers. Some utility service territories have reported potential projects that could meet several gigawatts of future electricity demand and attract billions of dollars in prospective private investment.
Rather than waiting until large-scale development has already occurred, Mills said Kentucky is taking a proactive approach.
"Other states are now trying to solve challenges after years of rapid growth," Mills said. "Kentucky has the advantage of planning. By establishing clear expectations and strong policies before major infrastructure commitments are made, we can attract investment on terms that work for both developers and Kentucky consumers."
The full report is available through the Kentucky Energy Planning and Inventory Commission.
The Kentucky General Assembly created EPIC to provide independent analysis of Kentucky's energy resources, infrastructure, supply adequacy and long-term planning needs. EPIC works with utilities, regulators, industry stakeholders and policymakers to support reliable, affordable and secure energy for the state.
