Louisville Metro Council approves 6-month moratorium on new data center projects
The Louisville Metro Council approved a six-month extension of a moratorium on new data center developments, bringing the total pause to 17 months. This decision, which also closes a loophole regarding data centers in existing buildings, came after a heated meeting and debate. Concurrently, Governor Andy Beshear signed an executive order establishing new rules for tech companies in Kentucky, requiring proof that projects will not impact utility costs and prohibiting electricity price increases to cover data center expenses.
The Louisville Metro Council voted 24-1 to approve a six-month extension of an administrative moratorium on new data center projects in the city, bringing the total duration of the development pause to 17 months. The measure now heads to Mayor Craig Greenberg's desk for approval. This ordinance also seeks to close a loophole that would prevent developers from converting existing large warehouses into data centers.
The Metro Council meeting was reportedly heated, with members engaging in sharp exchanges and public opposition present in the packed chamber. While an amendment to extend the moratorium to a full year failed, the primary six-month extension passed despite intense debate. The moratorium is set to end once the Planning Commission develops new data center ordinances, which will then require Metro Council approval. The Planning Commission has held 12 meetings and drafted proposals that aim to separate larger data centers from healthcare facilities and existing homes, and tighten environmental regulations.
Separately, Kentucky Governor Andy Beshear signed an executive order establishing strict new ground rules for tech companies looking to build data centers in the state. The order mandates that data center companies must prove to state officials their projects will not negatively impact utility costs and explicitly prohibits electric companies from raising prices to cover expenses related to data centers. Governor Beshear emphasized the enforceability of this order, stating that companies will need to present their plans to state agencies.