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Lexington council places moratorium on data centers, passes city budget

FILE - Amazon Web Services data center is visible at night Aug. 22, 2024, in Boardman, Ore. (AP Photo/Jenny Kane, File)
Jenny Kane/AP Photo/Jenny Kane
/
AP
FILE - Amazon Web Services data center is visible at night Aug. 22, 2024, in Boardman, Ore. (AP Photo/Jenny Kane, File)

Lexington's Urban County Council chose to pump the brakes on any data center development Tuesday, following a final vote on the annual budget.

Data Center Pause

The council was unanimous in its decision to press pause on any data center development and to review and establish regulations surrounding the controversial projects.

In a statement, Mayor Linda Gorton backed the move, saying that the community needs to "think very carefully about data centers" and noting that they "do not produce many jobs, and have the potential to increase utility costs on local residents."

Gorton said she's in favor of "tight controls" and has refused to support public incentives for a data center proposed at the Lexmark property.

Council member Tyler Morton wrote: "This action allows our community and local leaders the opportunity to thoughtfully consider the impacts, benefits, and long-term implications of data centers in Lexington before additional projects move forward."

Morton noted there is "still more work to be done, and community input remains critical."

A data center community engagement meeting is set for 6 PM Monday, June 15, at the Lyric Theatre.

The moratorium lasts through October 31 of this year.

Budget on the Books

Council members adopted an $847 million dollar overall budget Tuesday.

As CivicLex's Aaron Mudd explains, the amount is slightly higher than the original spending plan proposed by Mayor Linda Gorton at the outset of the process.

"The mayor has described this year's budget as fiscally restrained, but it still includes some notable investments. More than half of the general fund goes toward public safety services like police, fire, corrections, and emergency response," he says.

Then came the council member-crafted items.

"They approved nearly $3 million in additional spending requests, including money for accessibility improvements in parks and public facilities, maintaining the city's vehicle fleet, and additional security at city hall," he says.

Also included in the package is just over $5 million, to combat the next round of winter weather — following criticism of last winter's response from the city.