Kentucky Enacts QDC Legislation to Attract Hyperscale Data Centers
Kentucky's Qualified Data Center Project (QDC) legislation, effective from 2024, incentivizes hyperscale data center investments without imposing minimum job or payroll requirements. This policy aims to enhance economic conditions by exempting necessary expenditures from sales and use tax for data center operations.
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Kentucky's Qualified Data Center Project (QDC) legislation, enacted in 2024 and 2025, provides tax exemptions for hyperscale data centers contingent on significant capital investment. The legislation, which can last up to 50 years, eliminates minimum job or payroll requirements, facilitating easier entry for developers.
All tangible property needed for data center construction is exempt from sales and use tax under this law. However, entities using sales tax exemptions for energy in cryptocurrency mining cannot access these incentives, as they have already received separate tax benefits. The initiative reflects a strategic effort by the Kentucky Legislature to stimulate economic growth through data center development, which is deemed vital for the state’s economic health.
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