FRANKFORT, Ky. (June 4, 2026) — The Kentucky Energy Planning and Inventory Commission has released its first comprehensive policy analysis examining the opportunities and challenges associated with large-scale data center development across the Commonwealth.
The report, “Data Centers in Kentucky: Policy Analysis for the General Assembly,” provides lawmakers, regulators, utilities, and stakeholders with an in-depth review of Kentucky’s growing data center pipeline and identifies strategies to support economic development while maintaining reliable, affordable electricity for Kentucky families and businesses, according to a news release.
Commission leaders said the report demonstrates that Kentucky is uniquely positioned to compete for data center investment because of its low industrial electricity rates, available land, abundant water resources, growing fiber infrastructure, and proven record of supporting major economic development projects.
“Kentucky has an incredible opportunity before us,” said Senate Majority Caucus Chair Robby Mills, R-Henderson, who sponsored the bill that created. “The growth of artificial intelligence, cloud computing, advanced manufacturing, and digital infrastructure is creating demand for new data centers across the country. EPIC’s report shows Kentucky is well-positioned to compete for those investments while ensuring existing ratepayers remain protected and our electric grid remains reliable.”
The report notes that utilities across Kentucky are already seeing significant interest from data center developers. Some utility service territories have reported potential projects that could meet several gigawatts of future electricity demand and attract billions of dollars in prospective private investment.
Rather than waiting until large-scale development has already occurred, Mills said Kentucky is taking a proactive approach.
“Other states are now trying to solve challenges after years of rapid growth,” Mills said. “Kentucky has the advantage of planning. By establishing clear expectations and strong policies before major infrastructure commitments are made, we can attract investment on terms that work for both developers and Kentucky consumers.”
Sen. Steve West, R-Paris, said the report highlights Kentucky’s long-standing competitive advantage in energy affordability while recognizing the need for thoughtful planning as electricity demand continues to grow.
“Affordable and reliable energy has been one of Kentucky’s greatest economic development assets for generations,” West said. “This report reinforces the importance of protecting that advantage while positioning our state to benefit from emerging industries that depend on large amounts of electricity. The goal is simple: welcome new investment, create jobs, and ensure existing customers are not left paying the bill for infrastructure built to serve private development.”
The report examines experiences in states such as Virginia, Ohio, and Texas and identifies lessons Kentucky can apply as interest in data center development accelerates nationwide.
Jeff Brock, vice chair of EPIC, said Kentucky is well-positioned to compete for major economic development opportunities across the Commonwealth. He said the state can build on its strong energy foundation by leveraging existing assets and investing in the new generation needed to power future growth.
“Kentucky’s energy system has delivered reliable, affordable electricity for decades,” Brock said. “This report shows the Commonwealth already has many of the tools needed to support responsible growth. The priority now is to make sure investments in both existing and new generation benefit new large-load customers while continuing to protect affordable and reliable power for Kentucky families and businesses.”
EPIC Executive Director Eric King said the report represents the first in a series of policy analyses the commission plans to provide lawmakers as Kentucky’s energy landscape evolves.
“One of EPIC’s core responsibilities is providing independent, data-driven analysis to support informed decision-making,” King said. “This report gives policymakers a detailed assessment of Kentucky’s current position, identifies key questions for future consideration, and establishes a foundation for continued work on supply adequacy, infrastructure planning, demand forecasting, and economic development.”
Among its findings, the report concludes that Kentucky’s challenge is not whether data centers should locate in the Commonwealth, but how to integrate large new electricity demands in a manner that protects existing customers while supporting economic growth.
The report also highlights ongoing work by EPIC’s technical committees examining demand forecasting, primary energy supply, transmission infrastructure, and long-term system reliability.
Established by the General Assembly in 2024, EPIC is charged with conducting statewide energy planning, maintaining Kentucky’s energy inventory, evaluating supply adequacy, and providing independent analysis to policymakers on energy-related issues affecting the Commonwealth.
The full report is available through the Kentucky Energy Planning and Inventory Commission.
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