LEXINGTON, Ky. — Mayor Linda Gorton announced her support for a data center moratorium and opposition to public incentives for a proposed facility on the former Lexmark property Tuesday, stating that data centers produce few jobs despite potentially raising utility costs for residents.

"We need to think very carefully about data centers," Gorton said in a statement released by her office. "They do not produce many jobs, and have the potential to increase utility costs on local residents, as well as other concerns. I support very tight controls."

The Lexington Urban County Council unanimously passed the moratorium Tuesday, temporarily halting all new data center approvals through October 31, 2026. The measure includes a pause on permits, development plan acceptances and zoning changes related to data centers while the city's Planning Commission develops updated zoning regulations governing their use.

The moratorium followed DartPoints Operating Company's $29 million acquisition in May of the former Lexmark data center on New Circle Road. The Dallas-based company plans to expand the facility to support cloud, AI and other intensive computing with 20-30 megawatts initially and potential expansion to 70 megawatts long-term.

Gorton's office said it will not support public incentives for the DartPoints project. "We have informed them that we will not support public incentives for this project," according to her statement.

The moratorium comes amid growing concerns statewide about data centers' impact on utility rates and infrastructure. A recent Kentucky Energy Planning and Inventory Commission report warned that existing electric customers could pay for costly infrastructure expansion without clear rules in place. Utility companies are building new energy infrastructure to meet data center electricity demand, with those costs being passed to households due to lack of legislation requiring data center owners to pay.

Other Kentucky cities and counties have similarly enacted moratoriums. The Planning Commission will hold a public hearing on data center regulations, likely in late July, with recommendations returning to Council in August.