Kentucky Attorney General Confirms Data Centers as Industrial Buildings for Revenue Bond Funding

The Kentucky Attorney General's recent opinion confirms that data centers qualify as industrial buildings under state law. This determination may enable data center projects to secure funding through industrial revenue bonds from local legislative bodies.

The opinion was prompted by a request from attorney Mark F. Sommer, who represents a client planning to invest nearly one billion dollars in a large technology and data center spanning over 1,000 acres.

The project aims to support artificial intelligence, provide IT infrastructure, and facilitate networking communications. Industrial revenue bonds allow local governments to finance the acquisition of industrial buildings, promoting economic development. The opinion highlights that incentivizing data center projects through these bonds aligns with state objectives for economic growth and industry enhancement.