As western Kentucky communities continue grappling with questions surrounding artificial intelligence, energy demand, and potential data center development, U.S. Rep. Brett Guthrie said the region is well-positioned to capitalize on new investment while ensuring local communities remain in control and electric ratepayers are protected.
Guthrie, R-Ky., who serves as chairman of the House Energy and Commerce Committee, said western Kentucky has an opportunity to become a national leader as artificial intelligence and advanced manufacturing continue to expand.
“With innovation in new technologies like artificial intelligence, as well as the reshoring of American manufacturing, Owensboro and the surrounding region have an incredible opportunity to be a national leader in attracting new investments and creating an economy that will benefit future generations of Kentuckians,” Guthrie said.
He added that while AI presents significant economic opportunities, local concerns should not be overlooked.
“As the AI industry continues to take shape, it is essential that local concerns are addressed. Local input is at the core of this development, and that ratepayers are protected,” Guthrie said.
Guthrie said the United States is in a global competition with China to lead AI development, making investments in energy infrastructure and computing capacity increasingly important.
“The race for AI dominance against the totalitarian values of the Chinese Communist Party is one of the most pressing issues facing our nation today,” he said.
As chairman of the House Energy and Commerce Committee, Guthrie said Congress is working to address concerns surrounding electricity prices and data center development through legislation, including the proposed Ratepayer Protection Act, which would codify President Donald Trump’s Ratepayer Protection Pledge.
The measure is intended to help ensure the cost of serving large electricity users, such as data centers, is not shifted onto residential customers.
During a recent appearance at Politico’s Energy Summit, Guthrie said communities are right to ask questions about how data centers could affect electricity demand, water usage, and quality of life. However, he said the AI industry is not going away, and the United States must remain competitive.
“We don’t know where AI is going,” Guthrie said during the Politico Energy Summit. “The one thing we do know: it’s not going away.”
Guthrie said local governments should retain control over zoning decisions and carefully evaluate projects on a case-by-case basis rather than offering broad tax incentives.
During the Politico Energy Summit, Guthrie said data centers should pay their own way if they locate in a community.
“If a data center wants to come to town, they need to pay for what they’re going to do,” Guthrie said during the summit. “They need to pay the same taxes everybody else pays.”
The congressman said some sites are better suited for data centers than others, particularly former industrial properties with existing utility infrastructure, while emphasizing that local officials should weigh both the potential benefits and impacts before approving projects.
Guthrie also pointed to energy permitting reform as a key priority. He said Western Kentucky’s utility providers are capable of generating the electricity needed to support future industries, but require a more efficient regulatory process.
“As Chairman of the House Committee on Energy and Commerce, I have worked throughout this Congress to secure much-needed permitting reform to reduce government burdens and enable energy producers to deliver safe, affordable energy that American families and businesses can rely on,” Guthrie said.
