LEXINGTON, Ky. — The Urban County Planning Commission voted Thursday to recommend strict new regulations governing data center development, approving staff proposals to ban the largest facilities and restrict smaller operations to industrial zones with significant distance requirements from residential areas.

The commission voted 7-2 to approve the staff's recommendations with amendments following a packed public hearing on zoning ordinance text amendments addressing data center uses. The move comes months after the council passed a moratorium in June 2026 pausing permits and development plans through October 31, 2026.

The proposed regulations establish four new definitions: data center, major data center, minor data center, and server room. Major data centers exceeding 50,000 square feet would be prohibited in all zones throughout Lexington-Fayette County. Minor facilities below that threshold would require conditional use approval in B-4 and I-1 industrial zoning districts and must maintain at least 1,000 feet distance from neighborhoods, schools, and daycares.

Planning staff cited environmental and community protection as key rationales for the restrictions. "The proposed language protects local communities by prohibiting major data centers, which are the largest and most impactful type," according to staff recommendations presented at the hearing. The proposal also removes outdated "data processing centers" language from the zoning ordinance, providing clarity for land use regulations.

The regulatory effort was prompted by a potential development at the former Lexmark Data Center purchased by Dallas-based company DartPoints for $29 million in May. Accessory server rooms would be permitted without additional review, allowing on-site support for existing business and industrial uses.

The recommendation now advances to the Urban County Council for final consideration. Multiple residents testified during the hearing expressing concerns about environmental impact, resource consumption, and community well-being. The Environmental Commission also submitted recommendations for stricter regulations to protect local resources.