Louisville proposes banning ‘hyperscale’ data centers, seeks feedback

Louisville's Office of Planning has unveiled a draft of new regulations that propose a ban on "hyperscale" data centers and restrict other facilities to industrial zones. The proposed rules, which allow for some exceptions for smaller data centers, aim to establish clear standards for development while addressing community concerns. Brian Davis, director of the Office of Planning, stated that the regulations reflect extensive community feedback and are designed to support responsible investment while protecting the city's long-term interests.

This regulatory initiative follows a Metro Council committee's decision last week to table a proposal for a temporary six-month moratorium on new data center developments. Opponents frequently argue that data centers lead to increased electricity costs for residents and have negative environmental impacts, a concern that the draft rules seek to address by requiring evidence that new facilities will not burden existing ratepayers.

The city's planning efforts were spurred by a recent survey where most Jefferson County residents expressed opposition to new data center construction. Despite these concerns, Mayor Craig Greenberg has acknowledged potential benefits like projected tax revenue from upcoming projects, such as the 1.6-million-square-foot Camp Ground Road data center. That facility was approved by Louisville’s Planning Commission in March under existing Land Development Code, which currently lacks specific definitions or rules for data centers. The Office of Planning is currently soliciting public feedback on the draft regulations and plans to hold a public hearing before presenting them to the Metro Council.