The Data Center Divide
A policy snapshot ahead of the 2026 midterms. Mapping data center incentives, restrictions, and bans through legislation, regulations, and executive actions across all 50 states and 1,462 local jurisdictions.
City of Hopkinsville
Pro-Data Center Policies
Kentucky offers qualifying data centers conditional tax breaks on equipment and investment, with lower investment thresholds in less-populated counties; participating cities may also offer local tax relief for up to five years. Eligibility requirements apply, and a 6% tax on website hosting and software access may raise operating costs.
Rating and summary from Kentucky statewide as there are no scored current or future laws outside temporary restrictions for City of Hopkinsville.
pending · City of HopkinsvilleProposes to limit data centers to heavy-industrial areas, ban the largest facilities, and require permits and protections for nearby neighborhoods, utilities, noise, screening, and cleanup; it has not been approved.Kentucky Hopkinsville Data Center Zoning Ordinance (2026)
What this means
The proposal would prohibit hyperscale data centers and allow smaller ones only in I-2 zones with a conditional-use permit. Setbacks, utility-capacity documentation, and removal guarantees would add substantial hurdles and costs, making development much harder.
Restrictions & requirementsHide restrictions & requirements1
Draft bans hyperscale facilities at 150,000 square feet or greater, limits smaller tiers to I-2 conditional permits, requires closed-loop liquid cooling, and requires decommissioning surety. Not enacted requirements.
Benefits & exceptionsHide benefits & exceptions1
Proposed I-2 conditional-use pathway; nonconforming status for existing operations or construction; Board may permit repurposing improvements instead of removal during decommissioning. All are draft provisions, not verified current law.
Sources
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