City of Pikeville announces review of a potential data center at KY Enterprise Industrial Park
PIKEVILLE, Ky. (ABC 36 NEWS NOW) – The City of Pikeville announced on Friday that it has signed a preliminary agreement with MD Squared Power LLC to begin to “explore a potential data center” at Kentucky Industrial Park.
According to a release and other documents provided by the city, Pikeville and the Lexington-based company that is “focused on data center and digital infrastructure” signed a memorandum of understanding on April 20.
The agreement establishes a 120-day period in which the city of MD Squared Power LLC will negotiate with each other while they work to determine if a “final development agreement makes sense.”
The release emphasized that the agreement does not transfer land or commit the city to any terms, and is not a final contract.
“A lot of what we are hearing from the community reflects questions we were already asking ourselves,” City Manager Reggie Hickman said in the release. “We want people to understand what we are examining and why. The document we are releasing today alongside this press release lays that out as plainly as we can at this stage of the process.”
The developer projects the initial phase includes a potential capital investment exceeding $250 million and would reportedly create over 190 construction jobs and 40 permanent, full-time positions with wages above the county’s median income.
According to review details, the Kentucky Enterprise Industrial Park did “not attract this interest by accident” and that the park’s infrastructure, state-certified Build-Ready site, and its power capacity could potentially support the project’s initial phase without requiring new infrastructure.
“The Kentucky Enterprise Industrial Park represents years of public investment with the goal of bringing jobs to our area. We take a hard, honest look at every realistic opportunity to bring jobs and investment to this community,” said Mayor Jimmy Carter in the release. “That means doing our homework, looking at the benefits, and protecting the public from any potential pitfalls. That’s what this process is designed to do.”
The release states that the city commission’s priority is to “explore real economic opportunity” while protecting Pikeville’s environment and land, and that they understand the concern for residents in Eastern Kentucky surrounding rising utility costs and infrastructure.
An independent review is also in the works to ensure the city has all the information necessary to make a decision.
