A proposed data center in Simpson County remains in limbo after local government passed an ordinance that regulates advanced technology centers and integrated energy systems within the county.
The 2025 General Assembly created a tax incentive program to attract companies to build in Kentucky, which could bring new jobs and a boost in local tax revenue. But data center projects are deeply controversial, often due to a lack of transparency by developers and concerns about the impact on local communities.
The ordinance approved in December by Simpson County Fiscal Court potentially slows momentum for a proposed data storage center in Franklin.
The ordinance requires the developer, OTN Group, to obtain a conditional use permit before building a large-scale data center with power manufacturing off I-65 on Steele Rd.
Data storage centers would also be limited to the Heavy Industrial zone within all unincorporated and incorporated areas of Simpson County.
Judge-Executive Mason Barnes says the local measure will give the county more oversight into how a data center would operate, from energy and water consumption to noise and emissions.
TVA has said it can't provide the power needed to supply the data center. Barnes says his biggest concern with the project is on-site power generation.
"I can't imagine that anyone would want an energy production facility to just come in and start producing their own energy, whether it's natural gas like what's being proposed, possibly coal, possibly nuclear, and we're not gonna put any restrictions or guidelines on it, makes no sense to me," Barnes stated.
Company officials said last year they would pull out of the project if a conditional use permit was required.
Barnes said that during a meeting on Tuesday, the company's attorney, Gregory Dutton, asked the county to rescind the ordinance or possibly face a lawsuit. He argued the county doesn't have the authority to issue an ordinance that binds the city of Franklin. Dutton didn't return a message from WKU Public Radio seeking comment.
The Franklin City Commission will have final say on the project, but there's no time frame for a vote. An advisory committee is being formed to study the impact of data centers and report its findings to the city commission in the first quarter of this year.
Meanwhile, the Franklin Planning and Zoning Commission has called a special meeting for Thursday night to consider a preliminary development plan for the data center. The meeting is scheduled for 6:30 p.m. at the Franklin-Simpson High School Performing Arts Center.
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