PIKEVILLE, Ky. (WMDJ) — The City of Pikeville has begun a formal review of a proposed data center project that could bring more than $250 million in investment to the Kentucky Enterprise Industrial Park.

City officials announced Friday that they have signed a Memorandum of Understanding, or MOU, with Lexington-based MD Squared Power LLC to explore the possibility of developing a data center at the industrial park. The agreement was signed April 20 and establishes a 120-day period for exclusive negotiations between the city and the developer.

According to the city, the MOU does not transfer any land, commit the city to specific terms, or guarantee that the project will move forward. Officials emphasized that either party can end negotiations after the review period without penalty.

Before any final agreement is considered, the Pikeville City Commission plans to complete an independent review of the project, including legal, economic and site analyses. Any future development agreement would require approval by the commission during a public meeting.

The developer's proposal estimates the first phase of the project could create more than 190 construction jobs and 40 permanent full-time positions. City officials said those projections will be reviewed as part of the due diligence process.

The proposed site is located within the Kentucky Enterprise Industrial Park, a 190-acre industrial development owned by the City of Pikeville that currently includes multiple businesses and a state-certified Build-Ready site.

City leaders said their review will focus on balancing potential economic benefits with concerns related to infrastructure, utilities, environmental impacts and long-term community interests.

The the press releases issued by the city can be found here.