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Regbase

The Data Center Divide

Fayette County

This restriction takes precedence while in effect. The rating below excludes temporary restrictions.

Anti-Data Center Policies

Fayette County’s enacted rules pause new data-center plans and permits, while zoning bars major centers and tightly reviews smaller ones; descriptions conflict on whether the temporary pause ends in 2026 or 2027.

current law · County measure
Removes data centers as an expressly permitted principal use in six Lexington-Fayette zoning districts.Lexington-Fayette Urban County zoning ordinance removing computer and data processing centers as a principal use

What this means

If enacted as proposed, this measure would prohibit major data centers and limit minor ones to strict review, largely in industrial areas—significant barriers to development. Allowing accessory server rooms without extra approval softens the impact but does not offset those limits (major data centers would be prohibited; accessory server rooms).

People behind it

  • Initiated and proposed the zoning ordinance text amendment.

  • Identified in the measure's attribution as responsible for the ordinance.

  • Identified in the measure's attribution as associated with the ordinance.

Restrictions & requirementsHide restrictions & requirements5

  • Deletes references to computer and data processing centers from the zoning provisions for the P-1, B-2B, B-4, P-2, CC, and ED zones, removing their listed status as a principal use in those zones.

  • Prohibits major data centers, defined in the proposed regulations as the largest and most impactful type of data center.

  • Requires minor data centers to satisfy strict, enforceable evaluation criteria and provides opportunities for public input and participation in the planning process.

  • Limits minor data centers to industrial areas, narrowing where that use may be developed.

  • Allows accessory server rooms without additional review or approval only when they support an existing business or industrial use and are proportional to the square footage of that principal permitted use.

Benefits & exceptionsHide benefits & exceptions2

  • Allows accessory server rooms to operate without additional zoning review or approval, provided they support an existing business or industrial use and remain proportional to the existing principal use’s square footage.

  • Allows minor data centers to be considered under specific regulatory criteria, with such uses focused in industrial areas; approval remains subject to the stated standards and public-input process.

Sources

current law · County measure
Initiates changes to Lexington-Fayette’s zoning rules to define data centers, change where they may be allowed, and clarify how their development plans are reviewed.Kentucky Fayette County R-236-2026 (2026)

People behind it

  • Initiated the zoning ordinance text amendments and approved the resolution.

Sources

Specific to Fayette County only.

current law · County measure
Prohibits Lexington-Fayette from processing data-center zoning and development applications or issuing related permits and approvals until October 31, 2027.Lexington-Fayette Urban County data-center development moratorium (2026)

What this means

The measure pauses key steps for new data centers, including development-plan review and permits needed to operate, across any zone. It extends the pause until October 31, 2027, making it a severe but temporary barrier to building and operating data centers.

Timing

Ends
Oct 31, 2027

The measure extends the moratorium on certain data-center zone map amendments, development plans, and related permits, approvals, and authorizations until October 31, 2027.

People behind it

  • Identified as responsible for the resolution extending the data-center moratorium.

  • Identified as responsible for the resolution extending the data-center moratorium.

Restrictions & requirementsHide restrictions & requirements4

  • Moratorium until October 31, 2027, on accepting or processing zone-map-amendment applications when the application includes a preliminary development plan proposing a data center.

  • Moratorium until October 31, 2027, on accepting or reviewing development plans for data centers in any zone.

  • Moratorium until October 31, 2027, on issuing permits, approvals, or authorizations necessary to operate data centers in any zone.

  • All Urban County Government divisions must refuse to accept, process, review, or issue the covered zone-map amendments, development plans, permits, approvals, and authorizations during the moratorium, except for applications already filed.

Benefits & exceptionsHide benefits & exceptions2

  • Applications already filed, if any, are exempt from the moratorium for its duration, so they may continue to be accepted, processed, reviewed, or acted on. The measure’s exception for applications already filed

  • The moratorium is temporary and ends on October 31, 2027, limiting the duration of the restrictions on data-center applications, development plans, and operating permits. The extended moratorium to remain in place until October 31, 2027

Sources

current law · County measure
Temporarily prohibits Lexington-Fayette from processing new data-center zoning or development plans or issuing related permits and approvals through October 31, 2026.Lexington-Fayette Urban County Council Resolution 0528-26 (2026)

What this means

The measure would temporarily block new data-center development plans and necessary permits across Lexington-Fayette County, making it much harder to build or expand during the moratorium. It would last until October 31, 2026, and exclude applications already filed, so it is a serious but time-limited restriction—not a permanent ban (moratorium through October 31, 2026).

Timing

Ends
Oct 31, 2026

The moratorium applies to specified data-center applications, development plans, and operating permits, approvals, and authorizations. It begins on the resolution's effective date and expires on 2026-10-31. Applications already filed are excluded from the moratorium.

People behind it

  • Proposed, introduced, and passed the resolution declaring the data-center moratorium.

  • Responsible for reviewing data-center regulations and considering or implementing related ordinance changes.

  • Directed to refuse to accept, process, review, or issue the applications, plans, permits, approvals, and authorizations covered by the moratorium.

Restrictions & requirementsHide restrictions & requirements5

  • Moratorium on accepting and processing zone map amendment applications that seek to change any zoning designation in Lexington-Fayette County when the application includes a preliminary development plan showing a data center as the proposed use.

  • Moratorium on accepting and reviewing development plans for data centers in any zoning district within the Urban County Government.

  • Moratorium on issuing permits, approvals, and authorizations necessary to operate data centers in any zoning district within the Urban County Government.

  • All Urban County Government divisions must refuse to accept, process, review, or issue the covered zone map amendments, development plans, permits, approvals, and authorizations, except for applications already filed.

  • The moratorium applies from the resolution's effective date, June 9, 2026, through October 31, 2026.

Benefits & exceptionsHide benefits & exceptions1

  • Applications already filed, if any, are exempt from the moratorium’s directive requiring divisions to refuse, process, review, or issue covered zone-map amendments, development plans, permits, approvals, and authorizations.

Sources

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