DartPoints data center coming to Lexington won’t get city incentives

LEXINGTON, Ky. (WKYT) - A Dallas-based data center developer purchased a former Lexmark property on New Circle Road in a $29 million private sale that closed in May.

DartPoints Operating Company bought the property, which includes more than 300,000 square feet, 29.5 acres, and 81,000 square feet of existing raised floor data center space. The company calls the property “rare.”

DartPoints operates 11 data centers across the country, including one in Cincinnati. Their website says they “strategically” place data centers in mid-sized markets, “addressing diverse and unique regional needs and fostering economic growth.”

City will not provide public incentives

Mayor Linda Gorton’s office said they were not made aware of the company’s purchase until after the private sale was completed. Gorton said DartPoints has been informed that the city will not support public incentives for the project.

The property was formerly a Lexmark data center, which means it will not have to be rezoned for a data center to operate there.

“While this project is permitted under the current zone, we will be taking a close look at regulations controlling these types of developments. I support very tight controls,” Gorton said in a statement. “We need to think very carefully about data centers. They do not produce many jobs, and have the potential to increase the utility costs on local residents.”

Energy consumption and environmental concerns

Data centers run around the clock and consume large amounts of electricity for servers, cooling, and reliability systems.

The Kentucky Energy Planning and Inventory Commission says a 100 megawatt data center draws power that’s roughly equivalent to the continuous average use of about 80,000 homes.

In their announcement of the purchase, DartPoints said they plan to operate approximately 20-30 megawatts in their initial phase, with long-term expansion potential of up to 70 megawatts.

Last week, Gov. Andy Beshear said data center projects will have to cover 100 percent of their own energy costs if they want to operate in Kentucky. He added that the projects must also comply with state environmental regulations and demonstrate that they won’t cause environmental harm.

DartPoints said they’re taking steps to reduce their environmental footprint, including reducing greenhouse gas emissions through smarter technology and renewable power, lowering overall energy use, improving equipment efficiency and investing in sustainable solutions where feasible.

The company did not share a potential opening date in their announcement, but said planning and redevelopment work is underway with “aggressive” ready-for-service dates being finalized.

DartPoints did not respond to WKYT’s request for comment.

Gorton is seeking re-election and will face Raquel Carter in November. Carter was not immediately available for comment on this story.