The Louisville Gas and Electric Company and Kentucky Utilities Company want to take revenue from new data centers to offset their costs.
Betsy Ruhe, a city councilor in Louisville, and other opponents of the plan, said low-income residents will most likely foot the bill for new projects. Ruhe added that her community already struggles to pay utility bills, and many are facing increased financial pressure from the rising cost of living.
"When these power plants are being put in, the cost of the new construction and everything is foisted upon the ratepayers," Ruhe contended.
The surging power demand from data centers is driving up electricity costs across the country, including parts of Kentucky served by the electric grid operator PJM. Increased demand for energy and the costs of new electricity transmission are being passed to ratepayers. In a statement, Louisville Gas and Electric Company and Kentucky Utilities Company said they are committed to making sure all customers, including data centers, “pay their fair share of utility costs.”
Ruhe argued if data centers are drawn to Kentucky, they should make arrangements for their own power supply.
"I believe that data centers need to come with their own power," Ruhe asserted. "I also believe they don't need to be put in heavily developed areas."
A Department of Energy report released last year found data centers consumed around 4.4% of total electricity in 2023, and are expected to consume approximately between 7% to 12% of total electricity by 2028.
Based on original reporting by Liam Niemeyer for the Kentucky Lantern.