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The Data Center Divide

Madison County

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 Madison County.

Specific to Madison County only.

pending · County measure
Authorizes Madison County to provide data center and cloud-hosting services to Shelby County through the Kentucky Counties Government Cloud.Madison County Fiscal Court Ordinance 2024-01 (2024)

What this means

The ordinance modestly supports data center operations by letting Madison County provide cloud services to other counties and charge for them (offer data center services). It mainly concerns an existing county facility and does not provide broad incentives or change rules for building private data centers.

People behind it

  • Chief Information Officer who presented Ordinance 2024-01 for its first reading.

  • Fiscal Court magistrate who moved to approve the first reading of Ordinance 2024-01.

  • Fiscal Court magistrate who seconded the motion to approve the first reading of Ordinance 2024-01.

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  • Governmental party entering into the interlocal agreement and provider of the Kentucky Counties Government Cloud services.

  • Governmental party entering into the interlocal agreement for use of the Kentucky Counties Government Cloud.

Restrictions & requirementsHide restrictions & requirements10
  • The agreement cannot take effect until it receives approval from the Kentucky Department of Local Government: Subject to the approval of the Kentucky Department of Local Government.

  • The Madison County data-center facility must meet Tier 3 standards, provide 99.982% availability, and have appropriate power, cooling, technological infrastructure, and technical staff: meets the specifications of a tier 3 data center.

  • Systems hosted in the KCGC must have both local snapshots and offsite snapshot and bare-metal replication for disaster recovery: will have two forms of disaster recovery.

  • Members must pay monthly charges under an executed Bill of Services, with a new bill required whenever services are added, removed, or upgraded: Members will be billed in accordance with the executed Bill of Services.

  • The agreement provides only the Microsoft Server licenses associated with each guest virtual machine; members must purchase all other Microsoft licenses as a one-time cost: The Member must purchase all other Microsoft Licenses.

  • KCGC may, at its sole discretion and without prior notice, restrict or disable service or remove member equipment that threatens life, property, KCGC infrastructure, or service integrity, including compromised or unlawfully used machines: restrict or disable service or to remove from service.

  • KCGC may perform emergency maintenance at any time when necessary to protect its equipment or service integrity, potentially affecting member services; notice may be given at or immediately after the maintenance: perform emergency maintenance on its infrastructure.

  • The agreement lasts 12 months and automatically renews unless a party gives written termination notice at least 60 days before the renewal date: twelve (12) months and at least sixty (60) days.

  • After termination, the member must provide storage media for its data or virtual-machine copy, and Madison County is not required to help reconfigure, convert, or copy the data to new systems: The Member shall be responsible for providing storage media and will not aid in reconfiguring, converting or copying data.

  • If backups fail after a breach and restoration is incomplete, restoration costs from other sources become the member's cyber-security-insurance responsibility: all costs associated with the restoration of data from other sources.

Benefits & exceptionsHide benefits & exceptions9
  • The ordinance authorizes Madison County to enter an interlocal agreement with Shelby County to provide Kentucky Counties Government Cloud data-center services, allowing the counties to operate and share the KCGC facility.

  • The agreement recognizes Madison County’s facility as meeting Tier 3 data-center specifications, with 99.982% availability, appropriate power and cooling, technological infrastructure, and technical staff.

  • The agreement establishes service pricing through a Bill of Services, with monthly invoicing for hosted systems; a new Bill of Services may be executed when services are added, removed, or upgraded, supporting expansion or changes in capacity.

  • The agreement provides operational rules for scheduled and emergency maintenance, including commercially reasonable efforts to announce scheduled maintenance and authority for KCGC to perform emergency maintenance when necessary to protect equipment or service integrity.

  • The agreement requires two forms of disaster recovery for hosted systems: local snapshots for file or machine recovery and offsite replication for catastrophic events affecting the primary data center.

  • The agreement limits Madison County’s liability for covered breach claims to the member county’s service fees paid during the preceding 12 months and excludes incidental, special, consequential, and punitive damages.

  • The agreement automatically renews for successive 12-month terms unless either party gives written termination notice at least 60 days before renewal, providing continuity of operations.

  • If the agreement ends, Madison County must provide the member with a final copy of its data or a full bare-metal virtual-machine copy, and must transfer purchased Microsoft licenses to the member; the member must provide storage media, and Madison County is not required to reconfigure or convert the data.

  • Microsoft Server licenses associated with each guest virtual machine are included in the agreement, while other Microsoft licenses must be purchased separately from Madison County.

Sources

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