Lexington's Urban County Council has voted unanimously to put a temporary pause on the development of data centers in Fayette County as it develops zoning regulations governing their use. The moratorium, or temporary ban, is effective until October 31, 2026.
During a Tuesday, June 9th Council meeting, District 5 Councilmember Liz Sheehan introduced a resolution that put a halt on zone change requests, development plan approvals and issuing "any permits, approvals, and authorizations necessary to the operation of data centers, in any zone."
Sheehan also introduced a second resolution directing the Planning Commission to develop zoning ordinance text amendments – or changes to Lexington's zoning laws – that regulate data centers in Fayette County.
Council unanimously approved both resolutions with no discussion.
What does the moratorium do?
The temporary ban applies to the following actions, according to a copy of Sheehan's motion:
- "The Urban County Government’s acceptance and processing of applications for zone map amendments seeking to change the zone of any property in Lexington-Fayette County, if that application includes a preliminary development plan showing a data center as the proposed use."
- "The Urban County Government’s acceptance and review of development plans for data center in any zone."
- "The Urban County Government’s issuance of any permits, approvals, and
authorizations necessary to the operation of data centers in any zone."
In her motion, Sheehan noted that – while data center activity has increased across Kentucky in recent months – the Lexington-Fayette County Zoning Ordinance contains no definition or regulations for them.
"The urban county government needs time to examine and review
the regulation, processing, and impact of data centers in Lexington-Fayette County," Sheehan's motion reads.
"The Urban County Council also needs time to review, consider, and amend, if necessary, any ordinances related to data centers in Lexington-Fayette County so that it may ensure the proper integration of these uses into the adopted land use and zoning scheme," her motion reads.
Why does Council want a moratorium now?
The action by Council comes after the Lexington Herald-Leader reported last week that a former Lexmark property on New Circle Road has sold to a data center developer.
In an interview after the meeting, Sheehan said that she and other Councilmembers weren't aware of the sale until it went through.
"Those don't have to come to Council for approval, so we found out when the public found out," Sheehan said.
Lexington Mayor Linda Gorton's office also was not aware of the sale until it was complete, the Herald-Leader previously reported.
In statement released by her office Tuesday evening, Gorton said that she supports the moratorium. The community needs time to decide what controls need to be in place for data centers, Gorton's office said.
"We need to think very carefully about data centers,” Mayor Gorton said. “They do not produce many jobs, and have the potential to increase utility costs on local residents, as well as other concerns. I support very tight controls.”
Gorton has also said she will not support public incentives, such as tax credits or other financial support, for the data center proposed on the Lexmark property.
Sheehan said that Council has been working to update local zoning laws to account for modern data centers supporting artificial intelligence. That review is part of a look at industrial uses around the Blue Sky Small Area plan.
"This moratorium that you're seeing today is to give us time to finish our process that was already slated to be wrapping up over the next couple months," Sheehan said.
What happens next?
The next step in the process is for the Planning Commission to develop zoning ordinance text amendments around data centers and send them back to Council for consideration. The Planning Commission will be required to hold a public hearing on the topic, likely sometime in late July while Council is on its summer recess, Sheehan said. Following that process, it would return to Council in August.
If you want to make your voice heard on this topic, you can:
- Look for updates at engage.lexingtonky.gov once draft language becomes available.
- Attend or watch the Planning Commission's upcoming public hearing online. Planning Commission meetings are available to watch on LexTV.
- Engage with Council and your Councilmember when they revisit the topic in August. Public comment is also available during any Council Work Session or Thursday Council meeting.
