Governor Andy Beshear Calls for Repeal of Data Center Tax Incentives

Governor Andy Beshear called for the repeal of Kentucky state tax incentives for hyperscale AI data centers during a press conference on August 21, 2026. Beshear argued that the companies seeking to build these facilities are among the wealthiest in history and do not require financial assistance from the state.

The push for repeal follows a report from the Kentucky Center for Economic Policy, which estimated the state could lose over $2 billion in sales tax revenue from just four proposed centers. Although these incentives were expanded to all 120 counties in 2025, bipartisan support for rolling them back is increasing.

Republican State Representative Timmy Truett endorsed the repeal, while Senator Robby Mills suggested that the tax breaks might be substantially reduced. Senate President Robert Stivers urged Beshear to collaborate with legislators to address the issue in the upcoming session, noting that the governor could call a special session if an agreement is reached.