Jun 09, 2026
A rendering of the proposed data center on Campground Road in west Louisville.(Courtesy Poe Companies)Louisville’s Office of Planning would ban “hyperscale” data centers and limit others to industrial areas, with some exceptions possible for certain smaller facilities, according to a draft se t of regulations released Tuesday.The proposal comes a week after a Metro Council committee tabled a proposal to put a temporary moratorium on new data center developments. That would have paused new approvals for six months or until local lawmakers approved regulations.The draft rules released Tuesday call for “requiring evidence that new facilities will not shift any costs to existing ratepayers.” Many opponents of data centers say they make electricity more expensive for regular people and have detrimental environmental effects."Our goal is to develop clear, achievable standards that provide transparency and clarity for both residents and potential developers," said Brian Davis, director of the Office of Planning, said in a news release. "The regulations reflect extensive community feedback and are designed to support responsible investment while protecting Louisville's long-term interests."The vast majority of Jefferson County residents who responded to a city survey on data center development earlier this year said they didn’t want to see new facilities built anywhere in the county.Mayor Craig Greenberg has acknowledged resident concerns, but said he sees some benefits from data center development, such as a projected influx in tax revenue from the upcoming Camp Ground Road data center.Louisville’s Planning Commission approved that 1.6-million-square-foot facility in March. The decision was based on whether the project plans complied with the city’s Land Development Code, which currently does not define or have rules for data centers.City planners solicited public feedback for the draft regulations, and are again asking residents to weigh in. They plan to hold a public hearing before presenting regulations to the Metro Council, according to the press release.The proposed regulations highlighted by the Office of Planning are:Protect utility customers by requiring evidence that new facilities will not shift any costs to existing ratepayers;Require the developer presenting the proposal to bear the cost of improvements to infrastructure if upgrades are required;Limit data center development to designated industrial areas;Require environmentally low-impact construction and site design practices;Require substantial separation from homes, schools, and daycare facilities;Require a public hearing and conditional use permit for data centers that do not meet outlined exceptions for existing business operations;Establish noise standards and buffering requirements for generators and other equipment;Require the entity making the proposal to be transparent and disclose the company that would own and be using the proposed development; andPay prevailing wages in connection with the project’s construction. ...read more read less
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