Mercer County Bans New Data Centers Amid Project Bluegrass Push

The Mercer County Fiscal Court unanimously passed a one-year moratorium on new data center applications in unincorporated areas of the county on August 12, 2026. The decision follows widespread community opposition centered on utility costs, property values, and environmental impacts.

The moratorium does not extend to the city of Burgin, which is evaluating a land annexation proposal that would double the city's size. This annexation would include farmland targeted by Panattoni Data Centers for a hyperscale facility known as Project Bluegrass. The developer claims the project would generate 100 permanent jobs, 1,500 construction jobs, and an expanded tax base.

During a Tuesday evening meeting, the Burgin City Council delayed a vote on the annexation. Interim Mayor Joe Monroe stated the developer requested the item be removed from the agenda. While the Burgin Independent School District board supports the project for its potential to generate $25 million to $30 million in annual tax revenue, the grassroots organization We Are Mercer County continues to oppose the development through public protests.