FRANKFORT, Ky. — Gov. Andy Beshear signed an executive order Wednesday establishing strict new requirements for data center developers seeking to operate in Kentucky, citing concerns about rising utility costs and environmental impacts on local communities.

The executive order, announced during a Team Kentucky update, requires developers to demonstrate projects won't lead to higher utility rates and prohibits utility companies from raising rates to recover data center costs. The order also directs the Kentucky Energy and Environment Cabinet to deny permits that would negatively impact air quality, water use, water quality or natural resources.

"They must prove that their investment will deliver lasting benefits to Kentucky's working families," Beshear said at the press conference. The governor has long emphasized that data centers must pay for 100 percent of their own energy needs, including any new power generation required.

The move comes amid growing concerns in eastern Kentucky communities about proposed hyperscale data center projects. In June, residents in Boyd and Greenup counties expressed alarm about potential impacts on electricity bills and the local environment. Beshear has previously stated that any facility unable to meet his energy cost requirements would not be welcome in the state.

During the Team Kentucky update, Beshear also highlighted progress on the Pre-K Pilot Program and continued economic development across Kentucky. The governor noted the state is positioning itself to attract technology investment while protecting existing ratepayers from bearing infrastructure costs.