Lexington just made it a lot harder to build a data center in town.
Members of the Lexington-Fayette Urban County Council voted unanimously Thursday, Oct. 22, to remove data centers as a primary use in six zones, which blocks new data centers from going up in those districts, WKYT reported. The council also voted to ask the Planning Commission for a stand-alone data center zone.
For developers and contractors, the result is clear for now: there's no place in Lexington where a data center can go by right.
'Anybody who wants to develop a data center would have to go through the process'
Council member Emma Curtis, who backed both items, called the outcome a win. She credited Council member Morton and the community members who kept showing up to speak on the issue.
Curtis said no existing land will be zoned for data center use under the proposed new zone.
"There is no land in Lexington that is designated for any data center usage, and anybody who wants to develop a data center would have to go through the process of a zone change which would go before the planning commission and then ultimately before the council to have final say," she said, according to WKYT.
In other words, every future data center would be a case-by-case rezoning, with public hearings at both the Planning Commission and the council.
Why the rules changed
In council documents, members pointed out that what "data center" means has changed since Lexington's zoning rules were first written, WKYT reported. Curtis said she looks forward to working with the Planning Commission to update the regulations to match the current meaning.
She didn't mince words about the companies behind these projects. "I'm really looking forward to creating a more collaborative and transparent process going forward that centers on the voices of Lexingtonians and not the voices of these predatory out of state corporations seeking to exploit us," Curtis said.
Two ordinances, one direction
LEX18 reported that Thursday's meeting was the second reading for two zoning ordinances on data centers. In LEX18's description, the first creates a separate zoning category for data centers and includes recommendations on size, energy and water use, and setbacks from certain buildings, including schools. The second adjusts the language used to regulate future data centers.
The two outlets framed the stand-alone zone a little differently. WKYT described it as a request to the Planning Commission, while LEX18 described an ordinance creating the category. Either way, both point the same direction: data centers would be pulled out of general zoning and handled in their own district.
The moratorium
The council voted earlier this month to extend its data center moratorium until October 2027. According to LEX18, the moratorium covers permits, development plans and zone changes related to data centers.
WKYT reported that with the extension in effect, the county now has another year to refine what the future of data centers in Lexington looks like.
What we don't know
Neither report listed which six zones were affected or how large the setbacks, size limits or energy and water standards in the new zone would be. Those details will matter as the Planning Commission takes up the work.
Why it matters for contractors
Between the moratorium and the zoning changes, data center work in Lexington-Fayette County is effectively on hold until at least October 2027. Even after that, any project will need a full rezoning with public hearings, and standards on size, energy, water and setbacks could add design requirements and cost.
For Central Kentucky contractors, that means there's no near-term data center work to chase inside Lexington. Electrical, mechanical and site contractors who have been tracking data center demand should follow the Planning Commission's work on the new zone over the coming year, since those rules will decide what can be built here and how.