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 KRS CHAPTER 61 IS CREATED TO 3
READ AS FOLLOWS: 4
(1) As used in this section: 5
(a) "Data center" means a facility or group of facilities engaged in the primary 6
services of storing, managing, transporting, and processing digital data; 7
including but not limited to: 8
1. Computer and network systems, including associated components 9
such as servers, network equipment and appliances, 10
telecommunications systems, and data storage systems; 11
2. Systems for monitoring and managing infrastructure performance; 12
3. Internet-related equipment and services; 13
4. Data communications connections; 14
5. Environmental controls; 15
6. Cooling systems; 16
7. Power generation systems; 17
8. Auxiliary buildings; 18
9. Fire protection systems; 19
10. Security systems and services; and 20
11. Any supporting infrastructure; 21
(b) "Nondisclosure or confidentiality agreement" means an agreement or 22
contract that includes a provision or clause that prohibits a party from 23
disclosing, discussing , describing, or commenting on the agreement or its 24
terms beyond protections authorized by statute; and 25
(c) "Public agency" has the same meaning as in KRS 61.870. 26
(2) (a) A public agency shall not enter into a nondisclosure or confidentiality 27
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agreement rel ating to a data center that expands confidentiality beyond 1
what is authorized by the Kentucky Revised Statutes. 2
(b) Notwithstanding any provision of law to the contrary, for any contract 3
relating to the potential or actual development, siting, construction , or 4
operation of a data center entered into after the effective date of this Act, 5
any contractual provision that purports to waive, supersede, or expand the 6
requirements of the Kentucky Open Records Act pursuant KRS 61.870 to 7
61.884 or the Kentucky Open M eetings Act pursuant to KRS 61.805 to 8
61.850 shall be void as contrary to public policy. 9
(3) (a) Upon the execution of a data center siting or development agreement, the 10
issuance of a permit relating to the siting, construction, or operation of a 11
data center by a public agency, the approval of a special electric utility rate 12
applicable to data centers by the Public Service Commission or a municipal 13
utility, or a final public agency action approving a data center project, the 14
following information shall be made available to the public and shall not be 15
deemed confidential: 16
1. The identity of the data center owner or operator; 17
2. The project location; 18
3. The total amount and type of public financial incentives or tax 19
benefits that the data center has received o r is eligible to receive in the 20
future; 21
4. Any public financial contribution toward infrastructure to serve the 22
data center; 23
5. Projected and actual aggregate electricity demand, including peak 24
load estimates for the data center; 25
6. Projected and actual ag gregate water withdrawal, consumption, and 26
wastewater discharge for the data center; 27
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7. Required generation, transmission, distribution, water, or wastewater 1
infrastructure upgrades needed to serve the data center; 2
8. Any commitments related to environment al mitigation or resource 3
efficiency to which the data center has agreed; and 4
9. Enforcement or claw back provisions for incentives or benefits 5
received by the data center in the event that the data center fails to 6
meet any of its legal obligations or requirements. 7
(b) Nothing in this subsection shall require the disclosure of a trade secret as 8
defined in KRS 365.880. 9
(4) (a) Aggregated data concerning projected or actual impacts on the following 10
shall not be deemed confidential solely because the informati on relates to a 11
data center project: 12
1. Electric utility rates; 13
2. Water or wastewater utility rates; 14
3. Electric grid reliability; 15
4. Potential pollution discharge types and amounts; 16
5. Public infrastructure capacity; or 17
6. Public expenditures. 18
(b) This subsection shall not require disclosure of proprietary technical 19
specifications, cybersecurity systems, or internal operational designs. 20
(5) Notwithstanding any provision of law to the contrary, a nondisclosure or 21
confidentiality agreement or confidentiality designation entered into after the 22
effective date of this Act shall not restrict: 23
(a) The authority of local elected officials, utility boards, or regulatory agencies 24
to publicly discuss or deliberate data center impacts on infrastructure, 25
environmental impacts, or utility rates; or 26
(b) Public participation, hearings, or proceedings otherwise required by law. 27
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(6) Nothing in this section shall be construed to alter or limit any provision contained 1
in KRS Chapter 278, 61.810(1)(g), 61.878(1)(c), or 365.880. 2