By GAGE WILSON
For Glasgow News 1
As litigation continues over Cave City’s data center moratorium, Farmers Rural Electric Cooperative Corporation and East Kentucky Power Cooperative have released a joint statement clarifying where the proposed project stands from an energy infrastructure standpoint.
The statement, issued this week, says that while both cooperatives are prepared to serve large-scale data center developments, “a data center project application has not been filed” for a Barren County project.
The clarification adds a new layer to an ongoing lawsuit filed by Kentucky Industrial Alliance LLC, which claims Cave City improperly enacted a moratorium after the company had already submitted development plans tied to a proposed data center project.
According to the lawsuit, Kentucky Industrial Alliance submitted its plans on May 11 and had entered into an option agreement with an unnamed developer for the construction of a data center on property along Doyle Avenue. The company argues the city’s later moratorium unlawfully blocked a project that was already in motion.
Farmers RECC and EKPC’s statement does not directly address the lawsuit, but notes that any data center project seeking service in their territory must first enter into a three-party contract between the local cooperative, EKPC and the developer under the cooperatives’ Data Center Power tariff.
That tariff, approved by the Kentucky Public Service Commission, is designed specifically for large data centers and requires developers to outline anticipated power usage, infrastructure needs and how related costs will be covered.
“A key principle of this tariff is protecting other members from bearing the costs or risks involved in serving a data center,” the statement reads. “Data centers must pay their own way.”
The utilities emphasized they remain open to supporting economic development projects, citing potential benefits such as job creation, investment and expanded tax revenue, while maintaining that protections for existing ratepayers remain a priority.
The lawsuit against Cave City remains active, with an initial hearing scheduled for July 20.
