Demand Binding Commitments Before Eastern Kentucky's Largest Data Center Breaks Ground

Demand Binding Commitments Before Eastern Kentucky's Largest Data Center Breaks Ground

Recent signers:
Dianne Kennedy and 19 others have signed recently.

The Issue

Eastern Kentucky has heard big promises before. In 2017, Braidy Industries pledged a $1.3 billion aluminum mill on land just north of Interstate 64 in Boyd County. The company repeatedly failed to meet its investment goals, left behind an L-shaped imprint in a field that sat vacant for 28 years, and drew angry criticism from legislators who watched unkept promises leave the region no better off. The state eventually recovered its $15 million investment and returned the property to the industrial authority, where it has remained until now.

That is the same industrial park where TeraWulf, a Maryland-based Bitcoin mining and high-performance computing company, just announced plans to build what could become the largest data center in Kentucky history. The Muskie Data Campus could consume as much electricity as a city the size of San Francisco by 2030. It sits on a former strip mine. It will depend on a utility that, according to the Kentucky Resources Council, does not currently have enough capacity to serve its existing customers.

The project has real potential. TeraWulf is paying full industrial rates with no tax incentives or special exemptions. Local officials negotiated hard. The site sits next to an Ashland Community and Technical College trade school campus, creating a direct pipeline for local workers. If the commitments hold, this could be transformative for a region that has watched its economy shrink for decades.

But commitments need to be binding. Legislation that would have protected Kentucky ratepayers from subsidizing energy infrastructure upgrades built to attract tech companies died in the state Legislature this session. Kentucky Power is planning to build a new natural gas-fired plant at the former Big Sandy coal site 30 miles away, with officials insisting it is unrelated to the data center — but the timing is not coincidental. And there remains an unresolved question about who pays the final 3% of transmission upgrade costs that neither TeraWulf nor the state has clearly accounted for.

Eastern Kentucky deserves this investment. It also deserves the truth about what it is getting.

We are calling on TeraWulf to enter into legally binding community benefit agreements guaranteeing local hiring preferences, wage floors, and partnership with Ashland Community and Technical College before construction begins. We are calling on the Kentucky Public Service Commission to publicly resolve who bears the remaining transmission upgrade costs and to establish enforceable protections ensuring existing ratepayers never subsidize infrastructure built for this project. We are calling on the Kentucky Legislature to revive and pass ratepayer protection legislation before the substation construction is approved. And we are calling on Governor Beshear to require full environmental review of a project sited on former strip mine land before permits are granted.

Eastern Kentucky has been promised enough. This time, put it in writing.

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avatar of Mira H
Petition Advocates

246

Recent signers:
Dianne Kennedy and 19 others have signed recently.

The Issue

Eastern Kentucky has heard big promises before. In 2017, Braidy Industries pledged a $1.3 billion aluminum mill on land just north of Interstate 64 in Boyd County. The company repeatedly failed to meet its investment goals, left behind an L-shaped imprint in a field that sat vacant for 28 years, and drew angry criticism from legislators who watched unkept promises leave the region no better off. The state eventually recovered its $15 million investment and returned the property to the industrial authority, where it has remained until now.

That is the same industrial park where TeraWulf, a Maryland-based Bitcoin mining and high-performance computing company, just announced plans to build what could become the largest data center in Kentucky history. The Muskie Data Campus could consume as much electricity as a city the size of San Francisco by 2030. It sits on a former strip mine. It will depend on a utility that, according to the Kentucky Resources Council, does not currently have enough capacity to serve its existing customers.

The project has real potential. TeraWulf is paying full industrial rates with no tax incentives or special exemptions. Local officials negotiated hard. The site sits next to an Ashland Community and Technical College trade school campus, creating a direct pipeline for local workers. If the commitments hold, this could be transformative for a region that has watched its economy shrink for decades.

But commitments need to be binding. Legislation that would have protected Kentucky ratepayers from subsidizing energy infrastructure upgrades built to attract tech companies died in the state Legislature this session. Kentucky Power is planning to build a new natural gas-fired plant at the former Big Sandy coal site 30 miles away, with officials insisting it is unrelated to the data center — but the timing is not coincidental. And there remains an unresolved question about who pays the final 3% of transmission upgrade costs that neither TeraWulf nor the state has clearly accounted for.

Eastern Kentucky deserves this investment. It also deserves the truth about what it is getting.

We are calling on TeraWulf to enter into legally binding community benefit agreements guaranteeing local hiring preferences, wage floors, and partnership with Ashland Community and Technical College before construction begins. We are calling on the Kentucky Public Service Commission to publicly resolve who bears the remaining transmission upgrade costs and to establish enforceable protections ensuring existing ratepayers never subsidize infrastructure built for this project. We are calling on the Kentucky Legislature to revive and pass ratepayer protection legislation before the substation construction is approved. And we are calling on Governor Beshear to require full environmental review of a project sited on former strip mine land before permits are granted.

Eastern Kentucky has been promised enough. This time, put it in writing.

C
M
A
avatar of Mira H
Petition Advocates

The Decision Makers

Adam Moore
Kentucky House of Representatives - District 45
Responded
Thank you to everyone who has lent their voice to this petition. As your State Representative, I hear your concerns loud and clear. The massive energy, water, and financial footprint of data centers means our communities cannot afford to be left in the dark. I am actively pushing for strict data center transparency rules and mandatory public input across the Commonwealth so that Kentuckians always have a voice before these massive projects break ground. Our local workforces deserve binding commitments to fair wages and local hiring, and our ratepayers must be fiercely protected from bearing the financial burdens of energy infrastructure upgrades. We must put Kentucky families, workers, and ratepayers ahead of faceless corporate interests. Thank you for your continued advocacy and for standing up for accountability in our communities. Best, Adam Moore House District 45
Bobby Hall
Greenup County Judge/Executive
Responded
We have binding agreements with Dr. Ferguson, President and CEO of Ashland Community & Technical College Campus at East Park as well as Ryan Quarles, President of all Kentucky Community and Technical College System (KCTCS) We also have binding agreements with John Holbrook, business manager of Tri-State Building and Construction Trades Council. Also involved and a member of the East Park Board is Joe Dillow from Greenup County, Joe Dillow is the Business Manager for IBEW, Local Union 575. Also involved is Ben Collier, member of the Northeast Ky Economic Team. Ben Collier is also the Business Manager for the Plumbers, Steamfitters and HVACR, Local Union 248 of Eastern KY. We are expecting United Brotherhood of Carpenters and Joiners of America to play a significant role in this project. They are located right across the Industrial Parkway for where the Data Center is located. I personally spoke to Kevin Howard on Friday, May 29th. Last Wednesday, May 27th, John Holbrook, Joe Dillow and Ben Collier were in my office, in a zoom meeting with TeraWulf, Judge Chaney, and Ky Power. We will be discussing this, today, during a public meeting at the Boyd County Convention Center. These local union representatives will be with us. Thanks, Bobby Hall Greenup County Judge Executive [Note: The Change.org Civic Engagement Team reaches out to decision makers to let them know about petitions in their community and to help facilitate engagement with supporters. The above was an email response we received regarding this petition.]
Andy Beshear
Kentucky Governor
Eric Chaney
Boyd County Judge/Executive
Kentucky Public Service Commission
Kentucky Public Service Commission

Supporter Voices

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