A Game-Changer for Kentucky
A first-of-its-kind data center in Kentucky is set to launch in Louisville, aiming to attract major technology companies amid the growing demands of artificial intelligence and cloud computing.
Project Overview
The 400-megawatt data center campus will occupy 150 acres in southwestern Louisville, with plans for completion by late 2026. This initiative is being spearheaded by PowerHouse Data Centers, a Virginia-based company, in collaboration with Poe Companies.
Developers are currently in discussions regarding which tech companies will operate at this new facility. According to Hank Hillebrand, president of Poe Companies, "It will be a substantial name, and it will be a substantial investment."
Construction Plans
Construction is expected to commence this year, featuring five to eight large buildings along Camp Ground Road. These facilities will be equipped with cutting-edge processing equipment necessitating significant power and expertise from staff.
Supporting Infrastructure
In a related development, LG&E plans to construct a new switch station and an on-site substation to support the data center project, marking the utility's first hyperscale data center electric customer. The first 130 megawatts of power will be available by October 2026, with an initial capacity of 335 megawatts and a potential expansion to 402 megawatts.
Economic Impact
This project, which involves an investment in the billions, is expected to create thousands of jobs, including short-term construction positions and hundreds of long-term tech roles. Hillebrand credits LG&E and the state legislature for facilitating this ambitious endeavor.
Legislative Support
Notably, the 2024 General Assembly passed a 50-year sales tax break on equipment for data center projects in Jefferson County, provided a significant capital investment is made.
Future Prospects
The site, already zoned for data center use, will require city approval for its development plan. Initially envisioned for warehouses, the area along Camp Ground Road is now transitioning to accommodate this high-tech facility.
PowerHouse, founded in 2021, has announced several other data center projects in cities like Charlotte, Dallas-Fort Worth, and Reno. With 86 data centers either completed or in development, the company is expanding rapidly across the country.
Rendering of the future PowerHouse Data Center campus in Louisville, poised to host big tech names.
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