Lexington’s data center fight sharpens as city pauses approvals, writes rules

On June 9, 2026, Lexington-Fayette Urban County Council unanimously voted to pause several steps in the review of new data center proposals while it updates local rules for where and how these facilities fit. The moratorium applies to key planning and permitting actions tied to data centers and is set to run through Oct. 31, 2026.

What the June 9 moratorium actually pauses

According to Lexington-Fayette Urban County Government Council meeting minutes, the resolution places a temporary hold on three categories of government activity for data centers in any zone:

• Zone-change paperwork: the acceptance and processing of applications for zone map amendments that would change the zone of property in Lexington-Fayette County when the application includes a preliminary development plan proposing a data center.
• Development plan review: the acceptance and review of development plans for data centers, regardless of what zone the project is in.
• Permits and approvals needed for operation: the issuance of permits, approvals, and authorizations necessary to operate data centers, again “in any zone.”

The minutes also describe why the pause is happening: Council is seeking time to examine and review how data centers are regulated, how related applications would be processed, and what impacts could follow—before ordinances tied to data-center regulation are finalized.

Why this is happening now

Local concern built quickly after the sale of the former Lexmark data center campus on New Circle Road. WUKY reported on June 4 that DartPoints, a Dallas-based data center operator, bought the property for $29 million, and that the company plans expansion to meet demand tied to artificial intelligence, cloud computing, and hyperscale services.

WUKY reported that the site currently supports 20 to 30 megawatts of power and is expected to be upgraded to up to 70 megawatts in the future. That scale—and the potential for additional infrastructure needs—has helped sharpen the question of who sets the rules as new data-center proposals move forward in Lexington-Fayette County.

WUKY also reported that Mayor Linda Gorton backed the moratorium, saying the community needs to think carefully about data centers and noting they do not produce many jobs while they have the potential to increase utility costs on local residents. WUKY further reported that Gorton refused to support public incentives for a data-center proposal tied to the Lexmark property.

ZOTA: Lexington is starting a zoning rewrite, but it is not final yet

In parallel, Council initiated a Zoning Ordinance Text Amendment process—known as ZOTA—to update sections of Lexington’s zoning code related to data centers. The Urban County Council minutes say the initiative is meant to add definitions, adjust what uses may be allowed or permitted in various zones, and clarify development plan considerations, including reference to zoning ordinance sections 8 and 21.

Engage Lexington’s “Data Centers in Lexington” page explains that draft policy language is being considered by the Planning Commission, with public feedback built into the schedule. The page lists a zoning committee meeting on July 2, a Planning Commission work session on July 16, and a Planning Commission public hearing on July 30 in Council Chambers.

For residents and applicants, the key point is timing: the moratorium pauses certain data-center-related approvals and permit actions now, while the ZOTA process is what will shape the rules that come next. Until Council adopts final zoning language, the draft text is still just that—draft.

Why utility costs and transparency are driving the debate

Lexington’s local pause is also part of a broader Kentucky conversation about data center growth. WKYT’s investigation, published June 11, reported that Kentucky has 37 data centers, and that the Public Service Commission says there are at least 29 potential data center projects in its pipeline.

WKYT also reported concerns about transparency, including elected officials signing non-disclosure agreements, alongside community claims that neighbors felt blindsided by decisions that could affect utility bills.

In Lexington, those broader concerns are showing up in how the city is choosing to slow the decision timeline and require proposed projects to meet clearer standards through the zoning update process.

How to participate

Engage Lexington’s data-center hub invites residents to share concerns, ideas, and questions through an online forum and an “Idea Submission” tool. The page also lists an email route to staff in the Division of Planning. If you want your input to be part of the formal process, the most direct checkpoint is the July 30 Planning Commission public hearing.

Sources

• Engage LexingtonKY: “Data Centers in Lexington” (city engagement page with moratorium + ZOTA timeline details)
• LFUCG Urban County Government Council meeting minutes (June 9, 2026) (moratorium + zoning text amendment actions)
• WUKY: Lexington council places moratorium on data centers, passes city budget (June 9, 2026)
• WKYT Investigates: Kentucky data center boom raises concerns over costs, transparency (June 11, 2026)

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• Spartanburg County votes to pause new data center applications for one year—what it means locally and where residents can comment June 25