AN ACT relating to data centers.

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AN ACT relating to data centers. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
SECTION 1. A NEW SECTION OF SUBCHAPTER 10 OF KRS CHAPTER 3
224 IS CREATED TO READ AS FOLLOWS: 4
(1) As used in this section, "data center" means: 5
(a) A qualified data center project that has been approved for a certificate of 6
exemption under KRS 139.499; or 7
(b) A centralized facility that: 8
1. Is used primarily or exclusively fo r electronic information services, 9
including but not limited to the management, storage, processing, and 10
dissemination of electronic data and information through the use of 11
computer systems, servers, networking equipment, and related 12
components; 13
2. Has ele ctrical load that is either fixed, portable, or distributable, 14
including but not limited to structures that are not affixed to the 15
ground or are easily removed from a location; 16
3. Has an expected or actual peak of real -time energy demand of fifteen 17
(15) megawatts or greater; and 18
4. Has an expected or actual monthly load factor of sixty percent (60%) 19
or greater. 20
(2) A data center shall not commence operations unless it has the approval from the 21
cabinet pursuant to the requirements of this section. 22
(3) (a) To obtain approval from the cabinet to begin operations, an owner of a data 23
center shall submit a water feasibility study to the cabinet to determine if 24
there is an adequate supply of water for the data center's proposed use and 25
to estimate the impact of the use on existing wells, groundwater, and 26
surface waters in the vicinity. 27
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(b) A water feasibility study shall not be approved by the cabinet unless the 1
study demonstrates that the anticipated water supply yield is adequate for 2
the project and that the propo sed water withdrawals and discharges will not 3
endanger or adversely affect the quantity or quality of groundwater supplies 4
or surface waters in the vicinity. 5
(c) The water feasibility study shall include the following information: 6
1. The projected water demands of the data center; 7
2. The source of water to be used; 8
3. A description of how water will be used, including the amount or 9
portion of water to be used for each purpose, including but not limited 10
to cooling, humidity control, fire suppression, and domestic usage; 11
4. The long-term safe yield of the water source; 12
5. A description of the amount or portion of water withdrawn that will be 13
recycled or discharged and by what means; 14
6. A geologic map of the area with a radius of at least one (1) mile from 15
the site; 16
7. The location of all existing and proposed wells within one thousand 17
(1,000) feet of the property boundary, with a notation of the capacity 18
of all high-yield wells; 19
8. The location of all surface waters, including perennial and 20
intermittent streams, rivers, lakes, reservoirs, ponds, wetlands, springs, 21
natural seeps, and estuaries, within one thousand (1,000) feet of the 22
data center's property boundary; 23
9. A determination of the effects of the proposed water supply system on 24
the quantity and quality of water in nearby wells, surface waters, and 25
the groundwater table; 26
10. A statement of the qualifications and the signature of all persons 27
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preparing the study; and 1
11. Any other information that the cabinet may require. 2
(4) All data centers shall submit to the cabinet an annual water usage report, the 3
required contents of which shall be determined by the cabinet and set forth in 4
administrative regulations promulgated pursuant to KRS Chapter 13A by the 5
cabinet on or before December 1, 2026. A data center s hall submit its annual 6
water usage report pursuant to the following schedule: 7
(a) A data center which has already commenced operations before the effective 8
date of this Act shall submit its report to the cabinet by July 1, 2027, and 9
each July 1 thereafter; and 10
(b) A data center which commences operation after the effective date of this Act 11
shall submit its report by July 1 of the year following its initial water 12
feasibility study approval, and each July 1 thereafter. 13
(5) The cabinet may promulgate administr ative regulations in accordance with KRS 14
Chapter 13A to give effect to the requirements of this section. 15