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AI data center developer sues Kentucky city over new moratorium
The lawsuits target Cave Citys one-year halt on new data centers and its 2024 annexation of the 600-acre, 1.2-gigawatt site.
A developer is suing Cave City, Kentucky, over a one-year moratorium on new data centers tied to a proposed $4.8 billion AI campus near Mammoth Cave National Park, setting up an early court test of how far local governments can limit AI infrastructure projects, Decrypt reports. According to Decrypt, Kentucky Industrial Alliance filed two lawsuits after Cave City officials approved the moratorium just days after the company submitted plans for a 600-acre, 1.2-gigawatt AI and cloud computing campus north of downtown. The developer is also challenging the citys 2024 annexation of the property, arguing the land should fall outside city limits so the moratorium would not apply. Cave City councilwoman Leticia Cline said she is opposed to the data center being at the entrance to Mammoth Cave. Decrypt also notes that state lawmakers in multiple places have considered or advanced moratoriums or other restrictions as officials weigh community and power grid concerns, while the developer argues the city improperly blocked a project it says would bring billions in investment, hundreds of jobs, and millions in annual tax revenue. Residents and local officials have raised environmental concerns in the regions karst landscape, including groundwater and sinkholes, and Decrypt says the National Parks Conservation Association has warned that rapid data center expansion near national parks highlights the need for stronger safeguards.