In this blog, 3L senior staffer Shelby Davidson analyzes the economic boom and rise of generative AI companies which have led states to scramble for the opportunity to capitalize on the growth, creating tax incentives to encourage the construction of new data centers. Davidson highlights the environmental threats posed by data centers, including excessive electricity and water usage, which has led to different approaches to regulation. Davidson argues Kentucky should follow Virginia’s system, with a strict regulatory framework, rather than West Virginia, which has given data centers almost entirely free rein, to the detriment of its citizens.