Louisville weighs moratorium as data center concerns grow

Louisville weighs moratorium as data center concerns grow

News ClipSpectrum News·Louisville, Jefferson County, KY·6/3/2026

Louisville Metro is considering a moratorium on data center development due to concerns from council members and residents regarding zoning processes and environmental impact. Two council members proposed the measure, citing unhappiness with the rapid construction of a data center in Rubbertown by PowerHouse Data Centers and Poe Companies. The Office of Planning is finalizing recommendations to update the Land Development Code to address future data center projects.

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Gov: Louisville Metro Planning and Zoning Commission, Louisville Metro Council, Office of Planning, Planning Commission

The Louisville Metro Planning and Zoning Commission recently considered a proposed moratorium on data centers, brought forward by Metro Council members Jennifer Chappell and Shameka Parrish-Wright. The council members expressed significant concerns about hyperscale data centers and the current Land Development Code's inadequacy in regulating such projects, emphasizing the need to prioritize residents over private development. They are seeking recommendations to update the code and establish a more deliberate approval process, with Chappell noting that such recommendations have been promised since 2025.

Brian Davis from the Office of Planning stated that these recommendations are nearing completion and are expected to be released next week, followed by a 30-day public comment period. Residents, including Troy Morrison who lives next to an existing data center in Rubbertown, have voiced unhappiness about the project, developed by PowerHouse Data Centers and Poe Companies. Morrison, who learned about the project only after construction began, cited worries about reduced water pressure and the local electric grid's capacity, prompting him to put his house up for sale.

While a public meeting was held by the Planning Commission in early March, the council members and residents feel their voices were not sufficiently heard. Any new rules resulting from the recommendations would require approval from both the Planning and Zoning Commission and the Metro Council and would only apply to future data center and telecommunications hotel projects.