Some Kentucky lawmakers are considering expanding incentives for data centers.
Mike Haines, an Owen County resident and community advocate, said concerned citizens want the county to implement a moratorium on building data centers, given the county’s lack of zoning regulations and permits.
"They're going to start construction and they're going to get these tax breaks, and in the six to seven years that it takes to get one of these things up and running, any point they could just say, 'Nah, we don't need it,' and walk away," Haines pointed out.
No data center has yet been awarded a tax break by the Cabinet for Economic Development. In 2024, the Kentucky General Assembly created a sales tax exemption for data centers located in Jefferson County. The next year, the bill was expanded to cover the entire state.
Haines noted more tax breaks to corporations will not help rural counties struggling to keep basic services running.
"We're totally all volunteer in this county. We don't have a paid firefighter anywhere. Of course, with the price of diesel right now and with everything else, they're hurting for funding," Haines noted.
According to the Urban Institute, by mid-2026, cities and counties across 40 states had implemented more than 300 local moratoriums against data centers.
