Oldham County moves toward 150-day moratorium on data centers, hires outside counsel for appeal

Oldham County Fiscal Court on Thursday signaled a pause on new data-center development while county officials pursue zoning changes and respond to a legal appeal over how one proposed site was classified.

The court asked planning staff to draft a 150-day moratorium on data centers and scheduled the proposed ordinance for the planning commission’s May meeting, Oldham County Planning and Development Director Ryan Fisher said. Fisher told the court it is possible the fiscal court could take a first reading as soon as its first meeting in June, with a second reading and public hearing to follow later in the month depending on publication deadlines.

The moratorium would temporarily halt new permits and give the county time to craft zoning language and definitions specific to “data center” uses, Fisher said. He told the court staff has reviewed three possible definitions and a study/review committee is meeting to develop recommended zoning language.

Why it matters: Several members of the public and magistrates have raised concerns about siting large data centers near residential and agricultural land. The moratorium would give Oldham County time to set rules about where data centers can be located and what conditions apply before additional proposals move through the permit process.

The action follows growing public attention after a company inquired about a site in the county; Judge David Vogel said the company approached the county and the proposal became public as part of the standard review process. The court also acknowledged it previously held an April closed-session discussion about potential incentives for a data-center project and accepted an opinion from the Kentucky Attorney General finding that that executive session should not have occurred.

Legal appeal and outside counsel: Separately, Planning and Development’s administrative decision to treat the recent application as a “private utility” was appealed by a community member. Because County Attorney Barry Baxter has a prior attorney-client relationship with the appellant, the fiscal court voted to retain outside counsel to avoid a conflict of interest. The court approved hiring Vaughn Pettit Legal Group to assist planning, at rates listed in the contract packet (partners $180/hour, associates $160/hour, paralegals $100/hour). Baxter confirmed the firm regularly represents planning commissions and similar matters.

Procedure and next steps: Fisher said the planning commission will hear the moratorium proposal on May 27. If the commission approves language, the fiscal court could take up a first reading on June 3 and a second reading and public hearing later in June, depending on publication deadlines. The judge and staff emphasized that the moratorium and zoning updates would not necessarily stop the current application from following existing administrative or appeals processes.

Quotes: “We are trying to get our head around this,” Judge David Vogel said, adding the goal is to “take a breath” and craft appropriate rules.

Ending: The planning commission hearing is scheduled for May 27; the fiscal court indicated it intends to follow with readings in June pending legal and public-notice requirements.