Louisville mayor signs 6-month moratorium on new data center projects
Louisville Mayor Craig Greenberg signed a six-month moratorium on new data center projects after the Metro Council passed the ordinance. The temporary ban also closes a loophole regarding existing buildings and impacts a new proposal on Kramer's Lane. This local action comes as Governor Andy Beshear has also issued an executive order setting strict statewide rules for data center utility costs.
Louisville Mayor Craig Greenberg officially signed a six-month moratorium on new data center projects, following a contentious vote by the Metro Council. The ordinance, which passed 24 to one with Councilman Steuart Benson casting the sole no vote, temporarily halts new development plans, rezoning requests, and conditional use permits for data centers within the city. It also closes a loophole that previously allowed data centers to be established in existing buildings without new permits.
The Metro Council meeting leading up to the vote was described as heated, with one person being removed from the room amid cheers for those advocating for a pause on development due to concerns about natural resources and what some termed "environmental racism." Proponents of the moratorium cited concerns over the negative impact on natural resources and the electricity grid. The temporary ban, which lasts for up to 180 days, could conclude sooner if the Metro Council approves permanent data center regulations, which are currently being developed to prohibit hyperscale facilities larger than 500,000 square feet. This ordinance impacts a recent proposal for a data center on Kramer's Lane, whose developers submitted plans just two days before the council's vote.
This local action aligns with broader state-level regulations from Governor Andy Beshear, who has implemented strict rules for tech companies wishing to build in Kentucky. His executive order requires data center companies to prove that their projects will not impact utility costs for residents and explicitly prohibits electric companies from raising prices to cover data center-related expenses, declaring the order fully enforceable.