Beshear Orders New State Tests for AI Data Centers in Kentucky

Overview

• On Thursday, August 6, 2026, Governor Andy Beshear issued an executive order that requires data center developers to submit energy plans proving they will not increase local electricity costs.
• The order directs the Kentucky Public Service Commission to refuse utility rate increases that would recover costs tied to data-center development or operations.
• Kentucky’s Energy and Environment Cabinet must deny permits for projects that would harm air quality, water resources, wetlands, or other natural resources and must enforce public-engagement rules.
• The policy leaves local moratoriums and land-use decisions unchanged and makes clear that communities will keep the final say over whether data centers are allowed locally.
• The action responds to wider pressure from fast-moving federal and regional moves to build large AI campuses and to concerns that adding huge power loads can strain the grid, raise bills, and require long lead times for new generation and transmission.