PowerHouse, a leading US data center firm, has unveiled plans to develop a significant 400MW data center campus in Louisville, Kentucky. The project, set to be developed in collaboration with real estate firm Poe Companies, marks PowerHouse’s entry into the Kentucky market.
Initial Power Capacity and Future Expansion Plans
The campus will initially have a power capacity of 335MW, with a near-term expansion capability of up to 402MW. Construction is set to begin in 2025, with the first building and 130MW of capacity scheduled for completion in October 2026. This ambitious project will span across 154 acres, strategically located near Louisville’s Cane Run Generating Station, a 640MW natural gas-powered facility.
Site Development and Layout
The Louisville campus will feature a mix of multi-story buildings, designed to accommodate the growing demand for hyperscale data center infrastructure. According to Poe Companies’ site plans, up to seven two-story buildings may be developed, although PowerHouse’s official site suggests six buildings in total. These structures will collectively offer 1.8 million square feet (167,225 sqm) of space, making it a significant addition to the region’s data center infrastructure.
Strategic Location: A Hub for Hyperscale Growth
Louisville’s strategic location offers significant advantages to hyperscale data center operators. The city boasts reliable and cost-effective power, an abundant water supply, robust connectivity, and a business-friendly environment. These factors position Louisville as an ideal location for future data center growth. PowerHouse’s partnership with Louisville Gas and Electric (LG&E), which will provide a new switch station and a dedicated on-site substation, further enhances the campus’s appeal. The new power infrastructure will be completed by September 2026.
Louisville’s Role in Kentucky’s Economic Growth
This project will play a pivotal role in Kentucky’s economic development. Louisville Mayor Craig Greenberg highlighted the importance of this data center in creating thousands of well-paying jobs for the region. He emphasized that as the demand for data centers continues to rise, Louisville is uniquely positioned to meet the needs of the growing tech sector.
Poe Companies’ Involvement and Vision
Poe Companies, founded in 1989, is known for developing multifamily, industrial, and hospitality properties across the United States. This data center project will be the company’s first foray into the data center market. Steve Poe, CEO of Poe Companies, expressed enthusiasm for the collaboration, noting that their combined expertise would solidify Louisville’s position as a key hub for cutting-edge digital infrastructure.
Powerhouse’s Commitment to Innovation
Doug Fleit, co-founder and CEO of PowerHouse, expressed confidence in the success of the Louisville project, citing Louisville’s excellent business climate and the reliable service provided by LG&E. He noted that the collaboration with local utilities and community leaders was key to realizing this ambitious project. Fleit believes that this development will serve as a model for future data center projects across the country.
Tax Incentives Supporting Growth
The state of Kentucky has provided significant incentives to support data center development. The Jefferson County tax-exempt program, which was recently approved for a 50-year term, will benefit this project, ensuring that PowerHouse can invest in Kentucky’s long-term growth. These tax exemptions are part of a broader effort to attract investment in the state’s digital infrastructure.
FAQ Section
1. When will the PowerHouse Louisville data center be completed? The first phase of the data center, including 130MW of capacity, is expected to be completed in October 2026.
2. What is the total power capacity of the PowerHouse Louisville campus? The campus will initially have a power capacity of 335MW, with future expansion potential up to 402MW.
3. How many buildings will the PowerHouse campus have? PowerHouse plans to develop up to six buildings, which will provide 1.8 million square feet of space for data center operations.
4. What are the key advantages of Louisville for data centers? Louisville offers reliable power, competitive rates, abundant water, strong connectivity, and a supportive business environment, making it an ideal location for data center operations.
5. Who is involved in the development of the PowerHouse Louisville campus? The project is a partnership between PowerHouse, Poe Companies, and Louisville Gas and Electric (LG&E).
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