SB319
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Create a new section of Subchapter 10 of KRS Chapter 224 to define "data center"; provide that the requirements of the section only apply to data centers constructed on agricultural land; require a data center owner to file a decommissioning plan with the Energy and Environment Cabinet prior to operating the data center; provide for the minimum requirements of the decommissioning plan, including requiring a surety bond or similar security to guarantee the decommissioning of the data center; amend KRS 154.20-229 to require that a qualified data center project that has been preliminarily approved for a certificate of exemption under KRS 139.499 include in its memorandum of agreement with the Kentucky Economic Development Finance Authority requirements to engage with local government officials to regularly review and adopt practices to improve energy and water use efficiency.
Introduced: March 2, 2026
Last action: March 2, 2026
Plain-language summary
This bill sets rules for data centers built on agricultural land in Kentucky, requiring their owners to file a plan with the state for eventually shutting down and cleaning up the site, backed by a financial guarantee such as a surety bond. It also requires data centers that receive certain state tax benefits to commit in writing to working with local officials on improving how efficiently they use energy and water. Who it may affect: landowners and farmers whose property is near or converted for data center use, data center developers and operators, and local government officials in communities where these facilities are built.
