KY HB856

Data centers with 15+ megawatts peak energy demand and 60%+ monthly load factor must obtain cabinet approval before commencing operations in Kentucky

Owners must submit a water feasibility study demonstrating adequate water supply and no adverse impact on groundwater, wells, or surface waters within the vicinity

Water feasibility studies must detail projected water demands, sources, usage breakdown (cooling, humidity control, fire suppression, domestic), recycling plans, and effects on nearby water resources within 1,000 feet

All data centers must submit annual water usage reports to the cabinet by July 1 each year, with existing facilities starting July 1, 2027

Cabinet must establish reporting requirements through administrative regulations by December 1, 2026