{"data":{"id":"us-ky/krs-154.20-220","jurisdiction":"us-ky","citation":"KRS 154.20-220","heading":"Definitions for KRS 154.20-220 to 154.20-229.","body":"As used in KRS 154.20-220 to 154.20-229:\n(1) \"Affiliate\" means the following:\n(a) Members of a family, including only brothers and sisters of the whole or half\nblood, spouse, ancestors, and lineal descendants of an individual;\n(b) An individual, and a corporation more than fifty percent (50%) in value of the\noutstanding stock of which is owned, directly or indirectly, by or for that\nindividual;\n(c) An individual, and a limited liability company of which more than fifty\npercent (50%) of the capital interest or profits are owned or controlled,\ndirectly or indirectly, by or for that individual;\n(d) Two (2) corporations which are members of the same controlled group, which\nincludes and is limited to:\n1. One (1) or more chains of corporations connected through st ock\nownership with a common parent corporation if:\na. Stock possessing more than fifty percent (50%) of the total\ncombined voting power of all classes of stock entitled to vote or\nmore than fifty percent (50%) of the total value of shares of all\nclasses of  stock of each of the corporations, except the common\nparent corporation, is owned by one (1) or more of the other\ncorporations; and\nb. The common parent corporation owns stock possessing more than\nfifty percent (50%) of the total combined voting power of all\nclasses of stock entitled to vote or more than fifty percent (50%) of\nthe total value of shares of all classes of stock of at least one (1) of\nthe other corporations, excluding, in computing the voting power\nor value, stock owned directly by the other corporations; or\n2. Two (2) or more corporations if five (5) or fewer persons who are\nindividuals, estates, or trusts own stock possessi ng more than fifty\npercent (50%) of the total combined voting power of all classes of stock\nentitled to vote or more than fifty percent (50%) of the total value of\nshares of all classes of stock of each corporation, taking into account the\nstock ownership of each person only to the extent the stock ownership is\nidentical with respect to each corporation;\n(e) A grantor and a fiduciary of any trust;\n(f) A fiduciary of a trust and a fiduciary of another trust, if the same person is a\ngrantor of both trusts;\n(g) A fiduciary of a trust and a beneficiary of that trust;\n(h) A fiduciary of a trust and a beneficiary of another trust, if the same person is a\ngrantor of both trusts;\n(i) A fiduciary of a trust and a corporation more than fifty percent (50%) in value\nof the outstanding stock of which is owned, directly or indirectly, by or for the\ntrust or by or for a person who is a grantor of the trust;\n(j) A fiduciary of a trust and a limited liability company more than fifty percent\n(50%) of the capital interest, or t he interest in profits, of which is owned\ndirectly or indirectly, by or for the trust or by or for a person who is a grantor\nof the trust;\n(k) A corporation, a partnership, or a limited partnership if the same persons own:\n1. More than fifty percent (50%) in value of the outstanding stock of the\ncorporation; and\n2. More than fifty percent (50%) of the capital interest, or the profits\ninterest, in the partnership or limited partnership;\n(l) A corporation and a limited liability company if the same persons own:\n1. More than fifty percent (50%) in value of the outstanding stock of the\ncorporation; and\n2. More than fifty percent (50%) of the capital interest or the profits in the\nlimited liability company;\n(m) A partnership or limited partnership and a limited l iability company if the\nsame persons own:\n1. More than fifty percent (50%) of the capital interest or profits in the\npartnership or limited partnership; and\n2. More than fifty percent (50%) of the capital interest or the profits in the\nlimited liability company; and\n(n) Two (2) or more limited liability companies, if the same persons own more\nthan fifty percent (50%) of the capital interest or are entitled to more than fifty\npercent (50%) of the capital profits in the limited liability companies;\n(2) \"Approved company\" means an eligible company that has received final approval\nfrom the authority;\n(3) \"Authority\" means the Kentucky Economic Development Finance Authority\nestablished by KRS 154.20-010;\n(4) \"Colocation tenant\" means an entity that contracts with  the owner or operator for\nspace within a qualified data center project;\n(5) \"Commonwealth\" means the Commonwealth of Kentucky;\n(6) \"Data center equipment\":\n(a) Means computer equipment and software for the processing, storage, retrieval,\nor communication of data, used directly and exclusively in a qualified data\ncenter project, including but not limited to:\n1. a. Servers;\nb. Routers;\nc. Connections;\nd. Monitoring and security systems for the data center equipment;\ne. Fiber optic cabling and network equipment leading to and from the\ndata center project; and\nf. Other enabling machinery, equipment, and hardware;\nregardless of whether the property is affixe d to or incorporated into real\nproperty;\n2. Equipment used in the operation of computer equipment or software or\nfor the benefit of the data center project, including component parts,\ninstallations, refreshments, replacements, and upgrades, regardless of\nwhether the property is affixed to or incorporated into real property;\n3. All equipment necessary for the transformation, generation, distribution,\nor management of electricity that is required to operate computer server\nequipment, including substations, ge nerators, uninterruptible energy\nequipment, supplies, conduit, fuel piping and storage, cabling, duct\nbanks, switches, switchboards, batteries, testing equipment, and backup\ngenerators;\n4. All equipment necessary to cool and maintain a controlled environme nt\nfor the operation of the computer servers and other components of the\ndata center project, including chillers, mechanical equipment, refrigerant\npiping, fuel piping and storage, adiabatic and free cooling systems,\ncooling towers, water softeners, air ha ndling units, indoor direct\nexchange units, fans, ducting, and filters;\n5. All water conservation systems for the equipment, including facilities or\nmechanisms that are designed to collect, conserve, and reuse water;\n6. All computer server equipment, chass is, networking equipment,\nswitches, racks, fiber optic and copper cabling, trays, and conduit;\n7. All monitoring equipment and security systems for the data center\nproject, including security system monitoring services;\n8. All software and prewritten computer software access services;\n9. Extended warranty services with respect to data center equipment; and\n10. Any other tangible personal property that is essential to the operations of\nthe qualified data center project, excluding:\na. Electricity used by a qualified data center project; and\nb. Property used for administrative purposes at the data center\nproject, including office equipment; and\n(b) Does not include:\n1. Construction equipment; or\n2. Building and construction materials permanently incorporated as  an\nimprovement to real property;\n(7) \"Department\" means the Department of Revenue;\n(8) \"Eligible company\":\n(a) Means any corporation, limited liability company, partnership. limited\npartnership, sole proprietorship, business trust, or any other entity wit h a\nqualified data center project; and\n(b) Includes an operator, an owner, a project organizer, and a colocation tenant;\n(9) \"Eligible costs\" means expenditures made by the preliminarily approved company\nor approved company after preliminary approval for t he purchase, installation,\nrepair, and replacement of data center equipment for the qualified data center\nproject;\n(10) \"Final approval\" means the action taken by the authority to verify that, on or before\nthe fifth anniversary of the preliminary approval,  the minimum capital investment\nhas been made, with respect to the data center project;\n(11) \"Memorandum of agreement\" means the agreement between the eligible company\nand the authority executed under KRS 154.20-229;\n(12) \"Operator\":\n(a) Means any entity, other than an owner, a project organizer, or a colocation\ntenant:\n1. Operating a qualified data center project pursuant to a lease or other\ncontract with the owner; and\n2. Responsible for the control, oversight, or maintenance of a data c enter\nproject; and\n(b) Includes:\n1. An affiliate of an operator;\n2. A licensed property management company;\n3. A property lessor; or\n4. Any other individual or entity responsible for the control, oversight, or\nmaintenance of a data center project;\n(13) \"Owner\" means an entity, other than a project organizer, holding fee title to a data\ncenter project and includes an affiliate of an owner;\n(14) \"Preliminary approval\" means the action taken by the authority to enter into a\nmemorandum of agreement with an eligible company;\n(15) \"Project organizer\" means an entity that:\n(a) Solely provides qualified data center infrastructure for a qualified data center\nproject; and\n(b) Will enter into or has entered into a separate agreement with another entity for\nthe purchase, use, or operation of the qualified data center infrastructure;\n(16) \"Qualified data center infrastructure\" means providing site development and\norganization for a qualified data center project, including but not limited to:\n(a) An uninterruptible power s upply, including electrical substations and backup\ngenerators for safety against power disruptions;\n(b) Availability of water and natural gas service, including any necessary\ninfrastructure; and\n(c) Multiple layers of security, including:\n1. Physical secur ity at the data center project, including fencing, entry\ncontrol and monitoring, or security guards;\n2. Infrastructure monitoring, including monitoring for water, power,\ntelecommunications, and internet connectivity; and\n3. Environmental control measures, including sensors or responsive\nequipment for detecting fire, flood, or other natural disasters;\n(17) \"Qualified data center project\":\n(a) Means:\n1. Providing qualified data center infrastructure;\n2. Acquiring, leasing, rehabilitating, expanding, or constr ucting one (1) or\nmore buildings that:\na. House a group of networked server computers in order to\ncentralize the storage, management, and dissemination of data and\ninformation for a single project; and\nb. Contain:\ni. Dedicated cooling equipment for the computing machines\nand related infrastructure;\nii. Extra capacity for data redundancy, including the ability to\nmaintain or replace equipment without a system shutdown;\nand\niii. Physically isolated systems to avoid disru ption from both\nplanned and unplanned events; or\n3. Any combination of the activities described in subparagraphs 1. and 2.\nof this paragraph;\n(b) Has the following minimum capital investment on or before the fifth\nanniversary of the preliminary approval:\n1. For an owner, operator, or colocation tenant, at least:\na. Four hundred fifty million dollars ($450,000,000) if located in a\ncounty having a population equal to or greater than one hundred\nthousand (100,000);\nb. One hundred million dollars ($100,000,000)  if located in a county\nhaving a population greater than fifty thousand (50,000) but less\nthan one hundred thousand (100,000); or\nc. Twenty-five million dollars ($25,000,000) if located in a county\nhaving a population of not more than fifty thousand (50,000);\ndetermined using the county's population estimate from the most\nrecently available five (5) year American Community Survey as\npublished by the United States Census Bureau at the time of application\nby the eligible company; or\n2. For a project organize r, at least one hundred fifty million dollars\n($150,000,000); and\n(c) Does not include any data center project that:\n1. Will result in the replacement of data centers existing in the\nCommonwealth;\n2. Applies for or accepts any other economic development in centives\nunder KRS Chapter 154; or\n3. Benefits from the sales and use tax exemption for the sale or purchase of\nelectricity used in commercial mining of cryptocurrency; and\n(18) \"Term\" means the period of time for which a memorandum of agreement may be in\neffect, which shall not exceed:\n(a) Fifteen (15) years for a qualified data center project of a project organizer;\nand\n(b) For any other qualified data center project:\n1. Fifty (50) years for a data center project having a capital investment\nequal to or gr eater than four hundred fifty million dollars\n($450,000,000); or\n2. Twenty-five (25) years for a data center project having a capital\ninvestment less than four hundred fifty million dollars ($450,000,000).","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=56356","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:53Z","sha256":"0a40f4b50debb13a34621442a23a78335b278c1f7ca1a9f303b70e6446c13d2b","source_id":"us-ky","stale":false,"prev":"us-ky/krs-154.20-216","next":"us-ky/krs-154.20-222"},"notice":"GroundRules: Original legal text. Not legal advice."}