LOUISVILLE — Large “hyperscale” data centers, the massive facilities powering internet, cloud computing, and AI services, are growing rapidly in the U.S., and Kentucky communities need to plan how to locate and regulate them, experts said at a Louisville Forum panel Wednesday.
Cliff Ashburner, a lawyer with Dinsmore involved with the state’s only data center currently under construction, stressed the importance of embracing the opportunity. The $11 billion center on Camp Ground Road in southwest Jefferson County is set to open in 2026, creating about 210 jobs with an average salary of $112,000.
Panelists discussed potential concerns, including noise, pollution, traffic, and the enormous electricity needs of such facilities. Rob Houchens of We Are Oldham County said opposition is often about “location, location, location,” noting a previously proposed 1.7 million square-foot center in his county was withdrawn due to proximity to homes and insufficient regulations.
Electric utility executive John Bevington of LG&E and Kentucky Utilities said electricity rate increases are unlikely because utilities are regulated and data centers generate significant revenue. However, consumer advocates warn that ratepayers could see higher bills if utilities expand capacity for centers that underuse power.
Despite concerns, data centers also provide substantial revenue. The Louisville center will generate roughly $46 million for Jefferson County Public Schools, $10 million for Metro Government, and $12 million for the Pleasure Ridge Park fire department.
Tax incentives were discussed, but panelists said further breaks may not be necessary given the strong developer interest. Most new data centers are expected to locate outside urban areas, with communities needing proper planning and regulations to maximize benefits and minimize impacts.
The consensus: data centers are “inevitable,” and Kentucky should position itself to attract and manage them responsibly.
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