Louisville planning office unveils first draft of data center regulations

Louisville Metro’s Office of Planning has issued its initial draft of regulations for hyperscale data centers, aiming to address a lack of specific rules for these facilities. This move was prompted by community concerns, particularly following the approval of the city's sole hyperscale data center on Camp Ground Road under an outdated "telecommunications hotel" classification.

The proposed regulations include classifying data centers into three types, mandating their placement solely in M-3 industrially zoned areas, and setting a maximum size limit of 500,000 square feet. Facilities between 250,000 and 500,000 square feet would require a conditional-use permit, necessitating a public review.

Council Member Jennifer Chappel’s recent proposal for a moratorium on data center and telecommunication hotel permits is credited with creating urgency for the planning department’s work. Additional provisions in the draft include requirements for developers to demonstrate no increase in local utility costs, adhere to noise standards, maintain separation from residential areas, and provide strict transparency regarding ownership and construction details.

Louisville Metro Council Member Betsy Ruhe emphasized the need for strict adherence to these standards to prevent public disappointment in decisions made via conditional-use permits. The public now has until July 10 to submit comments on the draft, after which a second draft will be presented to the planning commission for a public hearing.