On the way to a candidate training event that took me through Mercer County, I couldn’t help but notice the blue and white signs planted along stretches of Highway 127 South with three simple words: NO DATA CENTER. I asked the candidates in Pulaski and surrounding counties if that was an issue in their campaigns. For several, it was. The May 19 primary election results made clear that data centers and land use played into the outcome of several races for local offices.
For months, local residents in several Kentucky communities have voiced concerns over noise generated by data centers and the huge demands placed on local electric and water utilities, which are likely to result in higher rates. According to PJM, a large electrical grid operator, a projected $6.3 billion will be added to the electricity bills of millions of households across the country over the next three years for this very reason.
Boyd Countians wondered how a proposed data center would impact their utility bills and property values and packed the Boyd County Convention and Arts Center on June 1 after learning local officials had signed a non-disclosure agreement (NDA) with AI data center developer TeraWulf. Another controversy is brewing in Mercer County, where the Burgin City Council voted on July 9 to annex more than 1,000 acres of land from the county in order to make way for a data center. Residents packed the Burgin Independent School building to put the brakes on the proposed site near the E.W. Brown Generating Station.
The Kentucky Lantern reported on the meeting and interviewed Bethany Corea: “A lot of people in Burgin and Mercer County, but primarily Burgin right now, just feel like the process is being rushed, that their voices aren’t heard.” Corea is part of the group We Are Mercer County, which opposes data centers. She expresses the sentiments of many in her county: “What it feels like to us is the local officials are going, ‘We don’t care what you think. More tax money.’”
Since then, the city of Harrodsburg is pushing back because they supply the city of Burgin with a major water line that would be overwhelmed without an upgrade. Mercer Fiscal Court is also considering pausing the move.
Keeping residents in the dark about huge developments and evading their input has led to several Kentucky communities pausing data center developments. According to a Kentucky League of Cities website post on July 14, “Many local governments decided to hit pause on data centers by imposing moratoriums on approval, construction, or business incentivization for data centers seeking to locate in their territory. Allen County, Daviess County, and Lexington, to name a few, have passed moratoriums with little pushback from data centers. But Cave City is now in a lawsuit regarding the legality of moratoriums on land use.” Oldham County adopted a moratorium on July 1, 2025. And there’s a pending data center restriction ordinance in Louisville.
Data centers are necessary for the artificial intelligence (AI) boom, and we’re told that the United States must win this race against China and that this requires aggressive and fast development. We’re also told that AI will transform our work and improve our lives. Potentially trillions of dollars in economic growth are at stake. All that’s necessary is for data center developers to find ideal sites and begin building.
Questions remain as to how to accommodate growth in the AI era while maintaining the integrity of local communities. Threats to residents’ quality of life and diminished property values are real and immediate. Eastern Kentucky resident David Sparrow spoke at the Boyd County town hall meeting on June 1 and told local officials who signed the NDAs with TeraWulf “You’re starting it off shady… We can’t trust that.”
Data centers were an issue in at least eight of the county judge-executive races where the anti-data center expansion candidate won. The issue will likely play a role in many races on the November 3 general election ballot. It’s clear that the average concerned Kentuckian has a voice and a vote in the matter. And proponents of data centers—both candidates and developers—should consider communities’ opinions and invite local residents into the conversation.
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