City slams brakes on data centers after residents warn of strain on water and power

Cave City, Kentucky, has temporarily paused new data center development after the city council voted 4-1 in favor of a moratorium.

According to a report from WBKO, Cave City leaders enacted the moratorium on May 20.

Residents urged the city to pause development because they believed a data center would stress their electric grid, increase utility bills, and consume millions of gallons of water from local sources. 

Concerns intensified after Mayor Dwayne Hatcher suggested wording changes that could open Cave City to data center development.

WBKO reported that the four supporters of the new rules were council members Ronald Coffey, Andrew Bagshaw, Clifton Parsley, and Leticia Cline. Councilman Denny Doyle was the only member in dissent.

For now, the action does not permanently ban data centers. Instead, it gives the town time to slow down and consider what industrial growth makes sense for residents.

However, local critics of data center projects say this vote is the beginning of a longer fight. 

"We want to prevent data centers completely trying to come within our community," Bagshaw said. "After we get that for Cave City, I would really love to work with Barren County officials with Cave City to make sure that, you know, as in a county, we prevent a data center coming around our area altogether."

Companies often pitch data centers as major economic drivers. Supporters argue that blocking them can mean losing out on jobs, investment, and tax revenue. Critics, however, say many of those jobs are temporary construction roles that disappear once people build the facilities.

Supporters of Cave City's pause say growth should not come at the expense of residents' quality of life. A moratorium can create space for smarter planning, especially if leaders want to avoid future conflicts over infrastructure, costs, and natural resources.

The moratorium pauses new data center proposals for 12 months. According to Hatcher, as stated by WBKO, there are currently no active plans for data center projects in the area.

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