The Energy Planning and Inventory Commission (EPIC) has released its first statewide policy study, examining how Kentucky can plan for a potential surge in electricity demand while keeping energy affordable and reliable for existing customers.
EPIC was created by the 2024 General Assembly to plan for Kentucky’s long-term energy needs, track the state’s energy supply, and provide independent information to policymakers on energy issues. At its January 2026 meeting, EPIC’s Executive Committee directed the commission to begin producing reports on timely energy issues as they emerge, while continuing its broader work toward a comprehensive long-term energy plan for the Commonwealth. Data center development is the focus of this first report.
“The question is not whether data centers should locate in Kentucky, but how to ensure they are integrated into the state’s electric system in a way that protects existing ratepayers and maintains reliability,” the report says.
In a press release announcing the report, EPIC Executive Director Eric King said, “One of EPIC’s core responsibilities is providing independent, data-driven analysis to support informed decision-making. This report gives policymakers a detailed assessment of Kentucky’s current position, identifies key questions for future consideration, and establishes a foundation for continued work on supply adequacy, infrastructure planning, demand forecasting, and economic development.”
Senate Majority Caucus Chair Robby Mills, who sponsored the legislation creating EPIC, said Kentucky’s approach has been deliberate.
“Other states are now trying to solve challenges after years of rapid growth,” Mills said. “Kentucky has the advantage of planning. By establishing clear expectations and strong policies before major infrastructure commitments are made, we can attract investment on terms that work for both developers and Kentucky consumers.”
The report notes that Kentucky is well-positioned to compete for large-scale energy investment, citing the state’s low industrial electricity rates, available land, abundant water resources, and growing fiber infrastructure as key advantages.
Senator Steve West, who serves on EPIC, said, “Affordable and reliable energy has been one of Kentucky’s greatest economic development assets for generations,” West said. “This report reinforces the importance of protecting that advantage while positioning our state to benefit from emerging industries that depend on large amounts of electricity.”
Kentucky Chamber President and CEO Ashli Watts serves as chair of EPIC.
The full report is available at caer.uky.edu/epic.
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