Louisville proposes ban on hyperscale data centers, sets strict rules for smaller facilities

LOUISVILLE, Ky. (WDRB) — Newly drafted regulations would ban hyperscale data centers in Louisville and set strict rules for smaller developments.

The Louisville Metro Planning Commission announced the proposed regulations Tuesday, which would limit future proposals for data centers to less than 500,000 square feet, and ban anything larger. It would also require any proposed developments to be located in industrial areas.

According to the release, the city is trying to reduce the environmental impact of smaller developments "while protecting Louisville residents, existing businesses, infrastructure, and utility customers."

"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. "The regulations reflect extensive community feedback and are designed to support responsible investment while protecting Louisville's long-term interests."

The release also outlined the following additional regulations:

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; and
Pay prevailing wages in connection with the project’s construction.

Tuesday marks the beginning of the 30-day review period for the drafted regulations while the city gathers public feedback. The community is encouraged to submit their comments here.

The Louisville Metro Office of Planning said it will evaluate the feedback and schedule a public hearing before the regulations are presented to Metro Council.

Click here to view the full proposal.