IMAGES: Another data center proposed for Louisville’s Rubbertown neighborhood
Dermody Properties has proposed converting a vacant Louisville warehouse in the Rubbertown neighborhood into a data center. This proposal comes as the Louisville Metro Council is expected to approve a moratorium on new data center construction and the Planning Commission considers new zoning rules. Mayor Craig Greenberg has instructed his team to hold the application pending the council's moratorium decision, amidst resident calls for an outright ban.
Dermody Properties, a real estate investment firm, has submitted plans to Louisville Metro for the conversion of a 350,000-square-foot warehouse at 3615 Kramers Lane in the Rubbertown industrial area into a data center. The company had previously received approval in May 2024 to develop the 20-acre site as a distribution warehouse, which remains vacant. The revised plan rebrands the facility as a "telecommunications hotel" and includes repurposing loading docks for generator equipment, adding an electrical substation, and enhancing perimeter security.
This proposal emerged just days before the Metro Council is anticipated to vote on a moratorium for new data center construction until the city updates its regulations. Mayor Craig Greenberg confirmed the receipt of a new data center application and directed his planning team to defer action on it while the proposed moratorium is under consideration, noting widespread bipartisan support for the ordinance. The Louisville Planning Commission is also reviewing new zoning rules, proposed by the Greenberg administration, which would restrict data centers over 500,000 square feet and impose special conditions on smaller developments.
Local residents have expressed strong opposition, advocating for a complete ban on data center construction in Jefferson County. The proposed Dermody Properties data center would be situated adjacent to an existing hyperscale campus by Poe Companies and PowerHouse Data Centers, currently under construction, and near the River Oaks Mobile Home Park. Attorney Nick Pregliasco represents Dermody Properties in this case, and Neal Driscoll, Midwest region partner at Dermody Properties, has been contacted for comment. The development plans do not specify the technology company that would operate the facility if approved.