A Kentucky developer confirmed that its Anthropic-linked data center project complies with newly implemented state limits on environmental and energy consumption impacts.
Maryland-based TeraWulf has submitted an energy plan to the Kentucky Public Service Commission and the Energy and Environment Cabinet, asserting that its Justified Data Campus project in Hancock County will comply with Governor Andy Beshear’s recent executive order on environmental and energy impacts. The company states the facility will protect electricity customers, contribute a fair share of state and local taxes, and maintain ongoing dialogue with community leaders.
The data center will occupy the site of a former aluminum smelter and operates under a 20-year contract with artificial intelligence developer Anthropic, whose investment in the facility is estimated at $10 billion. TeraWulf plans to utilize an existing 482-megawatt power connection previously used by the Century Aluminum smelter. According to the filing, the campus will consume approximately the same amount of electricity as the former plant while using less water and emitting fewer pollutants, resulting in minimal overall environmental impact.
Under a proposed contract with local and regional utilities—subject to Kentucky PSC approval—the data center would allow utilities to curtail power during periods of grid strain, such as extreme heat driving up residential demand. Economically, TeraWulf estimates the project will generate up to 1,000 construction jobs, followed by approximately 100 permanent positions once operational. The company projects annual payments of $7 million to the area school district, more than $22 million in property taxes to fund schools, libraries, and the county health department, and $14 million in state sales tax on purchased electricity.
Despite these projections, the project has faced local opposition. At a Kentucky PSC hearing in Lewisport last month, Hancock County residents voiced concerns over potential water consumption, air and noise pollution, and fears that the facility could further increase already rising electricity bills. Conversely, the latest filing includes a letter of support from Hancock County Judge-Executive Johnny Roberts. Another public meeting regarding the Justified project is scheduled for next month at Hancock County Elementary School.
Beyond Hancock County, TeraWulf is pursuing additional developments across the state. The company is planning an even larger data center located 20 miles west of Ashland on the Boyd and Greenup county line, though no energy plan has been filed for that site. Additionally, during an investor presentation earlier this month, TeraWulf announced plans to double the size of its Muskie Data Campus in Eastern Kentucky, which was initially pitched in May as a 1-gigawatt facility. No energy plan has been submitted for the Muskie project, nor has the company reached an agreement with Kentucky Power regarding electricity supply.
On the regulatory front, several utilities, including Western Kentucky’s Big Rivers Electric Corp., have signed President Donald Trump’s Ratepayer Protection Pledge. Critics argue the pledge carries no legal binding force, though state and local governments retain veto authority over data center projects. TeraWulf maintains that its filings and commitments align with Kentucky’s new standards for infrastructure development.