PIKEVILLE — The City of Pikeville has entered into a preliminary agreement with a Lexington-based developer to explore the possibility of building a large-scale data center at the Kentucky Enterprise Industrial Park.
City officials announced Friday that they signed a Memorandum of Understanding with MD Squared Power LLC on April 20, establishing a 120-day period for exclusive negotiations while both sides determine whether a final development agreement is feasible.
The city emphasized that the agreement does not transfer any land, commit either side to specific terms, or guarantee that the project will move forward. Once the 120-day period expires, either party can end negotiations without penalty.
According to the developer’s proposal, the project’s initial phase would represent more than $250 million in capital investment and could create more than 190 construction jobs and 40 permanent full-time positions with wages above the Pike County median household income. City officials say those projections will be independently reviewed before any final decision is made.
According to U.S. Census Bureau figures from 2024, the annual median household income for Pike County is $44,312.
MD Squared Power describes the proposed facility as an initial deployment of approximately 25 to 30 megawatts of computing capacity, with the potential to expand to between 75 and 100 megawatts if additional power becomes available.
According to the Secretary of State’s Office, MD Squared Power was organized in 2024 as M&D 2526 Realty in 2024. It amended its articles of organization in Feburary to change the company’s name to MD Squared Power. It’s managing member and only listed officer is Ben DeVary.
Mayor Jimmy Carter said the city has a responsibility to carefully evaluate opportunities that could bring jobs and investment to the region while protecting taxpayers and public resources.
As part of its review, the Pikeville City Commission is seeking independent legal counsel and plans to commission economic and site analyses to evaluate whether a data center is the best use of the industrial park, which has been developed over more than a decade using local, state and federal investments.
The city says it is also examining potential impacts on utility rates, water usage, environmental concerns, tax revenues and future job creation commitments. Officials stressed that any final agreement would need enforceable provisions to ensure promised jobs and economic benefits are delivered.
City Manager Reggie Hickman said many of the questions being raised by residents about data centers are the same questions city officials are already evaluating as part of the review process.
The Kentucky Enterprise Industrial Park is a 190-acre development owned by the city. It currently hosts two businesses and includes a state-certified Build-Ready site completed in 2024.
Before the City Commission considers any final development agreement, officials say the complete terms will be made available for public review and any vote will take place during a public meeting.
A Gallup Poll released last month indicates 71 percent of Americans are opposed to data centers in their communities, with 48 percent of respondents saying they are “strongly opposed.” Half of those saying they are opposed data centers cite their effect on local resources, such as water usage and power consumption.
A fact sheet about the data center review was provided by the city. It and a copy of the memorandum of understanding are printed below:
