Franklin, Kentucky Data Center Project Clears Key Hurdle, Awaits Final City Vote

Franklin, Kentucky Data Center Project Clears Key Hurdle, Awaits Final City Vote
March 6, 2026

A major data center development proposed for Franklin, Kentucky, has passed a significant regulatory step, highlighting the ongoing tension between local economic development ambitions and community concerns as the industry expands into new markets. The project's advancement underscores the complex approval processes developers face, even as demand for digital infrastructure grows.

On Tuesday, the Franklin Planning and Zoning Commission recommended approval for a proposal by developer TenKey LandCo to build a large-scale data center campus. The final decision now rests with the Franklin City Commission. The project plans to construct three facilities, each spanning 200,000 square feet (18,580 square meters), on a 200-acre site near Steele Road. This site is part of a future industrial area dubbed "Gateway 65."

A key feature of the proposal is its dedicated on-site power infrastructure. TenKey states it will build and operate a natural gas turbine power plant coupled with battery storage, asserting that "residential and commercial electric rates will not be affected." The company also claims the facility will use closed-loop cooling and emphasizes that it "has not requested tax abatements, TIF districts, or public incentives." Financially, TenKey estimates the project could generate approximately $30 million in annual property tax revenue, a figure derived from analyses of similar projects in the region. Specific details regarding the campus's IT capacity, however, were not disclosed.

Despite the planning commission's favorable recommendation, the project has encountered substantial local opposition. Reports indicate that some attendees at the commission meeting were asked to leave for being disruptive, and the Gateway 65 Facebook page has been flooded with critical comments, many simply urging the developer to "go away." In response, Gateway 65 and TenKey are conducting a 'Community Priority Survey' to gauge how residents would prefer to see potential new municipal revenue spent.

The Franklin proposal unfolds against a backdrop of broader regulatory scrutiny in Kentucky. TenKey is currently engaged in a legal challenge against a Simpson County ordinance that mandates data centers obtain a conditional use permit prior to construction. The outcome of this case could influence regulatory approaches in Franklin and other Kentucky municipalities. If ultimately approved, the Franklin campus would represent a substantial investment in southern Kentucky's digital infrastructure, potentially setting a precedent for how communities balance economic opportunity with local quality-of-life concerns.

Source: datacenterdynamics