Across Kentucky, local governments are moving swiftly to curb data center expansion, implementing moratoriums and adopting stricter zoning regulations as concern mounts over electricity consumption, water usage and minimal job creation from the energy-intensive facilities.

The Lexington Fayette Urban County Council unanimously passed a moratorium on new data center approvals, pausing permits, development plan acceptances and zone changes related to data centers until Oct. 31, according to reporting from the Public News Service. The move came after a data center developer bought a $29 million site in the city.

5th District Representative Liz Sheehan said the moratorium is designed to give the council time to establish more specific guidelines for tech companies looking to operate in the area. Sheehan said existing zoning language is outdated and no longer reflects the realities of modern data centers.

Data centers do not produce many jobs, and have the potential to increase utility costs on local residents, said Mayor Linda Gorton in a statement supporting the moratorium.

Lexington is not alone. A growing number of Kentucky cities and counties are considering moratoriums or implementing zoning regulations on data center construction. Daviess County enacted in late May a moratorium preventing data center construction for the next 12 months. The Cave City City Council voted 4-1 in favor of a one-year moratorium on accepting, processing or reviewing any applications, permits or requests related to the establishment, construction or expansion of data centers within city limits, prompting Kentucky Industrial Alliance LLC to file a lawsuit against the City of Cave City.

Environmental and infrastructure concerns drive the pushback. Boyd County residents packed a raucous public meeting about a proposed data center, sometimes yelling and booing over non-disclosure agreements signed by local elected officials and whether the environment and ratepayers would be protected. Critics say non-disclosure agreements are simply a way to hide information from the public.

The data industry has pushed back against the restrictions. However, the Louisville Metro Planning Commission released a draft ordinance regulating the siting of data centers – banning any data center that's more than 500,000 square feet while restricting facilities over 250,000 square feet to industrial areas.