LOUISVILLE, Ky. — Democratic members of the Kentucky General Assembly will convene a public town hall on data center policy, according to a press release distributed by the Kentucky Senate Minority Caucus.

The event, scheduled for 6 p.m. on July 8 at South Central Regional Library, comes as Kentucky faces a surge in data center proposals, with residents and local officials raising alarms about electricity demand, water usage, environmental impacts and potential cost increases for existing utility customers.

Participating lawmakers said in the release they want to hear directly from constituents about growing concerns surrounding data center developments. "Data centers are no longer a distant or theoretical issue for Kentucky," Sen. Cassie Chambers Armstrong said in a statement. "They are already shaping conversations about energy, infrastructure, land use, and economic development in communities across the commonwealth."

The town hall reflects broader anxiety across the state. Louisville Gas and Electric and Kentucky Utilities reported in March that 11 data centers with combined electricity demand of nearly 3.5 gigawatts have at least a 50 percent chance of locating in Kentucky, according to the Kentucky Lantern. The state has 37 operating data centers and at least 29 potential projects in its pipeline, according to a June WKYT investigation.

The surge followed legislation passed in 2024 and 2025 offering substantial sales tax incentives for data center projects. A 1.6 million-square-foot data center was approved near Shively in March despite opposition from residents citing concerns about pollution and strain on water and electricity supplies.

Louisville Metro released draft regulations in June proposing to ban hyperscale data centers and limit facilities to less than 500,000 square feet, confined to industrial areas. The proposed rules would require developers to cover infrastructure costs, establish noise standards and separation from homes, schools and daycares, and mandate transparency about facility ownership and operators.

A House bill during the 2026 legislative session would have required data center companies to cover electrical infrastructure upgrades and their own power costs, but the measure stalled in the Senate.

The town hall discussion will focus on utility cost protections, water-use reporting, land-use authority, public notice requirements, transparency about project ownership and environmental safeguards, according to the press release. Audrey Ernstberger of the Kentucky Resources Council is expected to address policy considerations related to data center development.