LOUISVILLE, Ky. (WDRB) — A proposed large-scale data center project in Louisville moved forward Thursday despite hours of opposition from nearby residents.
The facility is being described as a “telecommunications hotel,” the category data centers fall under in Louisville’s Land Development Code.
Dozens of residents filled the Metro Council Planning Commission meeting holding yellow protest signs as they voiced concerns about the project’s environmental impact, energy use, noise and other potential issues tied to large data centers.
The project is a partnership between Louisville-based Poe Companies and Virginia-based PowerHouse Data Centers, first announced in January 2025. Plans include seven two-story data center buildings covering about 1.6 million square feet, which would make it Kentucky’s first large-scale data center. The facility would support growing digital demands such as cloud computing and artificial intelligence.
Potential tenants include “hyperscalers,” major technology companies like Google, Amazon and Microsoft that operate thousands of servers, routers and cables to store and process massive amounts of data from phones, computers and other devices.
To make space for the project, seven homes have already been purchased near the Rubbertown area, which is known for its industrial operations.
“It’s been kind of a culture shock,” said Arnie Youngblood Jr. “These are our neighbors. We’ve known them for so many years and now they’re gone.”
A city development panel previously approved the project plans in June 2025 with a 4-0 vote. Because the site was already zoned for industrial use, the project did not require new land-use approvals. The committee only needed to confirm that the proposal met the city’s land development code.
Thursday’s Planning Commission vote focused on whether recent design changes — including reducing the building footprint and making the structures two stories tall — still complied with Louisville regulations.
The project is planned for about 150 acres along Camp Ground Road in Rubbertown. That area already permits “telecommunications hotels,” though critics argue the term is outdated.
“That’s talking about a Southern Bell switchboard in a house,” said Jeff Cavalcante. “I feel Poe Companies and PowerHouse Data Centers are taking advantage of outdated and vague regulation in Louisville’s Land Development Code.”
Metro Council has acknowledged the concern. In October, councilmembers passed a resolution calling for updates to the city’s code to better address modern data centers. However, the 120-day deadline to make those revisions has passed and the code has not been updated.
Residents spoke for hours during Thursday’s meeting, urging commissioners to reject the proposal.
“Average data centers use two million liters of water daily,” one resident said. “They have a tendency to overheat and catch fire, releasing toxic chemicals into the environment.”
Energy demand is another major concern. The proposed facility could eventually use about 400 megawatts of electricity — roughly enough to power 400,000 homes each month.
“The costs don’t disappear when they show up on our LG&E bills,” one neighbor said.
Louisville Gas & Electric and Kentucky Utilities recently approved a rate increase for Kentucky customers to expand infrastructure for new and existing users. While the company says the increase is not specifically tied to data centers, some residents remain skeptical about the timing.
In the end, the Planning Commission approved the development plan.
“You sold your kids out, you sold your grandkids out,” one person shouted after the vote.
In January, Metro Council also considered an ordinance aimed at protecting taxpayers as more data centers look to locate in the region.
These facilities require large amounts of electricity, water and infrastructure. While developers say they bring jobs and tax revenue, communities in nearby Meade and Oldham counties have already voiced strong opposition, arguing the potential costs and risks may outweigh the benefits.
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