Developer seeking approval for second data center in Rubbertown
A developer, Dermody Properties, is seeking approval for a second data center in Louisville's Rubbertown area, following a nearby hyperscale project by Poe Company. Residents and a city councilwoman voice strong opposition due to concerns about community impact, electricity, and water, as the city prepares to vote on a six-month moratorium and new data center regulations.
Dermody Properties is seeking approval for a second data center in Louisville's Rubbertown, proposing to convert a warehouse on Kramer's Lane into a facility for computers, equipped with new generators and an electrical substation. This development follows work already initiated by Poe Company on a hyperscale data center five times larger on Campground Road, which is projected to generate $68 million annually in local tax revenue.
Local residents, including Brenda Barnes who has lived in the area for over 30 years, are vocal in their opposition to the new data centers, expressing fears that they will negatively impact their community, water supply, and increase electricity costs. Councilwoman Tammy Hawkins, whose District 1 encompasses both proposed sites, is supporting a six-month data center moratorium to allow the city time to establish regulations for such large-scale developments. The moratorium is scheduled for a vote Thursday night, and she is confident it will pass.
Louisville Gas & Electric (LG&E) spokeswoman Liz Pratt confirmed the utility's awareness of developers' interests, noting that Kentucky's Public Service Commission approved higher rates for large data center customers this year. Under these new rules, companies must pay for 80% of power usage and infrastructure upgrades upfront. The city's draft regulations would cap data center sizes at 500,000 square feet; while Poe's Campground Road project would exceed this limit, it would be grandfathered in, but Dermody's proposed Kramer's Lane data center would comply.