Governor Andy Beshear Enacts Executive Order Mandating Energy Protection Plans for Data Centers

FRANKFORT, KY — Kentucky Governor Andy Beshear signed a comprehensive executive order establishing the Commonwealth Data Center Infrastructure and Ratepayer Protection Framework, requiring all commercial hyperscale data center developers seeking state industrial incentives to submit certified utility reliability plans.

Protecting Residential Ratepayers from Industrial Peak Power Costs

The executive order directs the Kentucky Energy and Environment Cabinet and the Public Service Commission (PSC) to review commercial power purchase agreements for facilities demanding more than 25 megawatts of grid power. Developers must demonstrate that industrial cooling water consumption does not deplete municipal aquifers and enter into binding agreements to pay local municipal and school district property taxes without seeking permanent tax abatements.

Governor Beshear affirmed that Kentucky welcomes high-tech manufacturing and technology sector investment, but will never allow out-of-state tech corporations to strain local energy grids or drive up utility bills for working families.

Labor Unions and Technology Sector Stances

Building trades unions praised the executive order for creating hundreds of union electrical and pipefitting jobs while protecting community utility infrastructure.

Data center developers requested standardized review timelines for facilities deploying on-site natural gas or solar microgrids.

Implementation Timelines

The Kentucky PSC will publish standardized data center energy filing regulations on October 1, 2026.