Cave City Data Center Moratorium

Cave City, Kentucky, has paused data center development while it reviews zoning and the potential effects of a proposed hyperscale campus near Mammoth Cave National Park.

Kentucky Industrial Alliance is challenging the moratorium in court, arguing that its development plan should be reviewed under earlier rules. The dispute highlights tensions between promised investment and tax revenue and concerns about power demand, infrastructure costs, water and karst-environment risks. Lexington has taken a similar temporary permitting pause while it develops rules for future data centers.