Kentucky's data center tax break, previously estimated to cost $15 million a year, could quickly cost the state more than $1 billion in lost revenue, according to the Kentucky Center for Economic Policy. The estimate comes as some state lawmakers consider expanding incentives for data centers, a move that a rural Owen County resident says would do little for communities with limited budgets.

Mike Haines, an Owen County resident and community advocate, said concerned residents want the county to adopt a moratorium on building data centers because it lacks zoning regulations and permits. He argued that companies could collect tax benefits early in a project and then walk away.

"They're going to start construction and they're going to get these tax breaks, and in the six to seven years that it takes to get one of these things up and running, any point they could just say, 'Nah, we don't need it,' and walk away," Haines said.

No data center has yet been awarded a tax break by the Cabinet for Economic Development. In 2024, the Kentucky General Assembly created a sales tax exemption for data centers located in Jefferson County. The following year, the measure was expanded to cover the entire state.

Haines said additional tax breaks for corporations will not help rural counties struggling to keep basic services running. He said Owen County relies entirely on volunteers for fire protection.

"We're totally all volunteer in this county. We don't have a paid firefighter anywhere. Of course, with the price of diesel right now and with everything else, they're hurting for funding," Haines said.

Local opposition is growing elsewhere as well. According to the Urban Institute, by mid-2026, cities and counties across 40 states had implemented more than 300 local moratoriums against data centers.