LEXINGTON, Ky. — Official minutes from the June 9 meeting of the Lexington-Fayette Urban County Council show the council took significant action on two major items affecting the community: approval of a fiscal year 2027 budget and enactment of a moratorium on data center development.

At the June 9 meeting, the council unanimously approved the fiscal year 2027 budget on second reading. The balanced budget totals $847 million with $546 million in general funds and emphasizes fiscal restraint amid the city's slowing economic growth, with only three new staff positions planned.

The most notable action came with the unanimous passage of a resolution implementing a moratorium on data center development through October 31, 2026. The moratorium pauses acceptance of zoning change applications for data centers, review of data center development plans, and issuance of permits and approvals necessary for data center operations in any zone.

District 5 Councilmember Liz Sheehan introduced both the moratorium and a companion resolution directing the Planning Commission to develop zoning ordinance text amendments governing data centers. Both resolutions were fast-tracked through council rules suspension.

The action follows data center company DartPoints' announcement that it acquired a former Lexmark facility in north Lexington with plans to expand the property for cloud and artificial intelligence computing, potentially increasing power usage from 20-30 to 70 megawatts. Mayor Linda Gorton has opposed public incentives for the project, citing concerns that data centers produce few jobs and could increase utility costs for residents.

Sheehan noted that Lexington-Fayette County's zoning ordinance contains no definition or regulations for data centers despite increased data center activity across Kentucky in recent months. A public hearing on the zoning amendments is scheduled for late July while council is on its summer recess, with the matter expected to return to council in August.