Documents emerge detailing massive Cave City data center proposal
Draft report outlines the potential scope, costs, and economic impact of a proposed hyperscale data center in Cave City and Barren County.
CAVE CITY, Ky. — Newly released documents are providing the clearest picture yet of a proposed hyperscale data center campus in Cave City and Barren County, a project that has largely remained out of public view despite weeks of questions from local officials and residents.
The draft economic impact report, prepared for Cave City DataCo I, LLC, outlines the potential size, tax revenue, job creation and infrastructure needs of the proposed Cave Point Commerce Center.
State business records do not show the LLC is active in Kentucky at this time.
Kentucky Industrial Alliance, the current landowner and seller of the property to the developer, said the proposed campus would be located within the Cave City Industrial Park between Interstate 65, the railroad, U.S. 90 and Herbert Turner Road.
Brennan Crain
The release comes as officials in Cave City and Barren County have repeatedly said they have not been involved in discussions regarding a potential data center project and were unaware of plans for such a development.
Kentucky Industrial Alliance said Wednesday that the information contained in the report was based on project details that had been shared with local officials and stakeholders. The statement did not identify who received the information.
Neither Cave City nor Barren County currently has zoning regulations that would prohibit a data center from being developed in the area.
Kentucky Industrial Alliance has also filed a lawsuit challenging a temporary moratorium approved by Cave City in late May that halted consideration of certain development proposals while the city reviews its regulations.
What does the report say?
The report describes Cave Point Commerce Center as a hyperscale data center campus planned on approximately 600 acres in Cave City and unincorporated Barren County.
According to the report, the campus would include 10 buildings totaling about 2 million square feet. Five buildings would be located within Cave City and five would be located in unincorporated Barren County.
At full build-out, the campus would have 1,200 megawatts of capacity, placing it among the larger data center developments proposed in Kentucky.
A data center is a facility that houses computer servers and networking equipment used to store and process information. Such facilities support cloud computing, artificial intelligence, online services and other digital operations.
The report estimates the project would generate approximately $45.2 million in annual property tax revenue once fully assessed.
Of that amount, approximately $40.4 million would go to local taxing districts, while about $4.8 million would go to the state.
According to the report, the Barren County School District would receive approximately $23 million annually, while the Caverna Independent School District would receive about $6.6 million.
The report estimates Barren County government would receive approximately $5.7 million annually, while Cave City would receive about $2.9 million.
The analysis also projects significant employment impacts.
According to the report, the campus would support 360 direct jobs, including approximately 300 data center operations positions and 60 jobs tied to power generation.
The report estimates direct payroll at nearly $38 million annually.
When jobs created indirectly through suppliers, contractors and related spending are included, the total employment impact is estimated at approximately 929 jobs.
Construction of the campus is expected to take about four years.
During that period, the report estimates construction activity would support an average of roughly 3,900 jobs annually and generate approximately $12.3 billion in economic activity throughout the region.
Cave Point Commerce Center Data Center economic impact analysis by brennan.crain
The report also projects a major increase in Barren County's property tax base.
According to the analysis, Barren County currently has approximately $2.6 billion in assessed property value. The report estimates the project would add roughly $5.75 billion in real property and on-site power generation assets.
If those projections prove accurate, the report estimates the project would increase the county's assessed tax base by approximately 221 percent.
The documents also provide details about how the proposed campus would be powered.
According to the report, the facility would use a combination of on-site natural gas generation and electricity supplied by East Kentucky Power Cooperative.
The report estimates the project would fund approximately $32 million in electrical infrastructure improvements, including grid interconnection and substation upgrades. Those improvements would become permanent utility assets.
Water use is also addressed in the report.
The analysis states the campus would use approximately 300,000 gallons of water per day through a closed-loop cooling system designed to recirculate water rather than continuously discharge it.
According to the report, water removed during maintenance activities would be transported off-site by truck.
The report also addresses state tax incentives available to qualifying data center projects. Under Kentucky law, eligible projects may receive sales and use tax exemptions on certain equipment purchases.
However, the report states those incentives do not exempt projects from paying property taxes. As a result, the projected property tax revenue outlined in the analysis would remain even if the project qualified for state incentives.
Brennan Crain
Despite the detailed projections, the report repeatedly notes that its findings are preliminary.
The document is labeled a draft for internal review and describes its figures as planning-grade estimates. It states that future analysis should incorporate project-specific construction budgets, final property valuations and confirmed jurisdictional boundaries before the projections are used for official decision-making.
The report concludes that if constructed as proposed, the Cave Point Commerce Center could become one of the largest additions to the local tax base in Barren County history.
“My request is simple: please read the report, review the facts for yourself, ask questions, and make your own informed decision,” the statement said.
