Lexington data center project sparks moratorium and new zoning rules. Here's what to know

A Dallas-based data center developer’s $29 million purchase of a former Lexmark property on New Circle Road has set off a rapid regulatory response in Lexington that’s still being sorted out.

City officials quickly paused new data center approvals and began drafting rules that would sharply limit where such facilities can operate.

Here’s what to know on how DartPoints’ purchase has impacted data centers in Lexington:

• DartPoints Operating Company closed on the 745 W. New Circle Road property May 15 for $29 million, acquiring more than 345,000 square feet across nearly 30 acres, with plans to develop the site for AI and other power-intensive customers.
• The site currently has 20 to 30 megawatts of capacity, with long-term expansion potential to 70 megawatts — enough electricity to power roughly 70,000 homes at once, according to reporting on the developer’s plans.
• The Lexington-Fayette Urban County Council unanimously approved a moratorium June 9 that blocks data center development plans, approvals and zone changes in Fayette County through Oct. 31, passing the resolution in less than 15 minutes with no discussion.
• DartPoints did not apply for a zoning compliance permit or certificate of occupancy before the moratorium took effect, meaning the company cannot currently operate at the site, Planning and Preservation Commissioner Keith Horn said.
• A draft zoning text amendment released by planning staff would prohibit major data centers — those larger than 50,000 square feet — from locating anywhere in Fayette County.
• Under the proposed rules, no data center could be built within 1,000 feet of a residential zone, an agricultural zone outside the urban service boundary, a school, daycare or other childcare facility.
• DartPoints CEO Scott Willis told Commerce Lexington’s Gina Greathouse in a June 2 email that the company planned to invest approximately $1.05 billion at the facility — $300 million initially, followed by up to $750 million as power capacity increases.
• Mayor Linda Gorton’s office said it would not support public incentives for the project but backs “tight controls,” and Fifth District Council Member Liz Sheehan sponsored the moratorium to give the city time to review regulations.
• The Planning Commission will hold a public hearing July 30 on the draft amendment before sending it to council for final review, as part of the process to define data centers in city code.

The summary points above were compiled with the help of AI tools and edited by journalists. The source reporting referenced above was written and edited entirely by journalists.