The Louisville Metro Council approved plans in March 2026 for a 1.6-million-square-foot hyperscale data center campus in West Louisville, developed by Louisville-based Poe Companies and Virginia-based PowerHouse Data Centers. The approval came despite local opposition over concerns regarding potential air and water pollution from the data center site.
The campus, located on Camp Ground Road just west of Shively, spans 154 acres with up to six buildings and a maximum utility power capacity of 525 megawatts. Construction was slated to begin in 2026, with the first phase offering 130 MW of capacity expected to be operational by the end of 2026.
A Second, Larger Campus
PowerHouse and Poe Companies subsequently announced plans for a second, even larger data center campus outside Louisville — a 550-acre, $9.6 billion project. The expansion underscores the rapid pace of data center development interest in Kentucky, a state that until recently had no large-scale data center presence.
PowerHouse Data Centers, a division of American Real Estate Partners, lists nearly 60 data center buildings in its portfolio nationally. The Louisville projects represent a significant expansion into the Kentucky market.
Community Concerns
The West Louisville approval drew opposition from some community members concerned about environmental impacts, particularly given the site's proximity to residential areas. In response, the city has been considering a draft ordinance to regulate hyperscale data centers, addressing concerns about noise, water use, energy infrastructure, and community engagement.
The project highlights the tension between economic development goals and community concerns that is playing out in cities across the country. Louisville's experience may inform how other Kentucky communities approach data center proposals.
Kentucky's Emerging Data Center Market
Kentucky has become an increasingly active market for data center development, with projects proposed or underway in locations including Louisville, Franklin, Paducah, Cave City, and other communities. The state's available land, relatively affordable power, and central location have attracted developer interest.
However, the rapid influx of proposals has also prompted community pushback in several Kentucky communities, leading to moratoriums in Cave City and ongoing debates in other areas. The state's approach to balancing development with community concerns is being closely watched.
