Rubbertown data center exempt from new Louisville regulations
Louisville Metro government is proposing new city codes to regulate data centers, including size limits and disclosure requirements. However, a large hyperscale data center already under construction in the Rubbertown neighborhood is exempt from these new regulations as it was approved prior to their publication. This project is three times the size allowed under the proposed rules and will consume significant electricity.
The Louisville Metro government is moving forward with updated city codes aimed at regulating data centers, following proposals from the planning commission and Office of Planning. Key changes include a maximum size of 500,000 square feet for new data centers and a requirement for developers to disclose who the facility is being built for.
However, a large hyperscale data center currently under construction in Louisville's Rubbertown neighborhood, situated on a 150-acre lot off Campground Road in Jefferson County, is exempt from these impending regulations. This facility is three times the allowable size under the draft codes but received the necessary approvals before the new regulations were published, allowing its construction to proceed legally. Metro Councilman Marcus Winkler expressed regret that the regulations couldn't have been completed sooner.
Developers, identified as The Poe companies and Powerhouse Data Centers, anticipate that the facility will generate $68 million in annual taxes. Despite this, local resident Jeff Cavalcanti and reporter Travis Brees emphasized that the financial benefits should not outweigh the significant impact on city resources. Louisville Gas & Electric (LG&E) estimates that at full operation, the data center will require as much electricity as 300,000 homes. While a full data center moratorium has been considered in Louisville's past, the current proposed regulations, if approved, would prevent future hyperscale projects of a similar scale, though they will not affect the one currently being built.