Key facts
- Kentucky Governor Andy Beshear claims the Trump administration did not brief him on a $100 billion data center campus plan announced in July.
- The proposed Paducah American Energy Hub would be built on a 3,500-acre Department of Energy site.
- Beshear stated he received notice of an announcement but not details on scope, power demands, or environmental mitigation.
- The Department of Energy confirmed providing notifications to the Governor's office prior to the announcement.
- Beshear recently signed an executive order establishing baseline standards for data centers in Kentucky.
- The executive order directs utility regulators to prevent rate increases for Kentuckians due to data center projects.
Kentucky Governor Andy Beshear has expressed frustration with the Trump administration, stating he was not briefed on a proposed $100 billion data center campus planned for federal land in his state. Beshear claims that neither the White House, the Department of Energy, nor the private companies involved—NextEra Energy and Brookfield Asset Management—consulted him before the project's public announcement at the end of July.
Beshear indicated that while his office received notification of an upcoming announcement, he was not privy to details regarding the project's immense scope, its significant power demands, or the proposed methods for meeting those demands and mitigating environmental impacts. He emphasized that such discussions are standard for any data center project his office would typically engage with.
A spokesperson for the Department of Energy stated that notifications were provided to members of the Governor's office in the weeks leading up to the announcement, describing it as standard practice. The White House referred inquiries to the DOE, while the project consortium pledged to work with all stakeholders.
The governor's concerns come as he recently signed an executive order establishing baseline standards for data centers in Kentucky, aiming to prevent utility rate increases for residents. This move aligns with a broader trend among Democratic governors to address public unease over the rapid build-out of data center infrastructure, driven by the demands of artificial intelligence.
Other states are also grappling with similar issues. In Pennsylvania, Governor Josh Shapiro is seeking a middle ground by promoting investment while urging grid operators to cap electricity price increases. New York Governor Kathy Hochul has implemented the nation's first state-level moratorium on large data center construction. Beshear himself has stated that new data center projects in Kentucky must cover their own power costs without burdening ratepayers.
Experts like former Kentucky PSC chair Kent Chandler have noted that Beshear's executive order may be more political than substantive, as the Public Service Commission is not obligated to adhere to it. However, Beshear maintains the order creates a necessary conversation starter for counties and developers, ensuring data centers do not negatively impact water and air quality.