Louisville proposed data center regulations. Here’s what they say
Jun 10, 2026
(Ryan Van Velzer)After months of delay, Louisville Mayor Craig Greenberg’s administration released draft regulations on new data center construction this week.Planning officials have promised the zoning rules would “support responsible investment while protecting Louisville's long-term interests
.” But what do the proposed regulations actually say?Here’s what you need to know:Focus on zoningThe proposed data center regulations come in the form of amendments to Louisville’s Land Development Code. It's a 724-page document that spells out what types of developments can go where and how much vetting they require.Currently, the code doesn’t contemplate the kind of large-scale data centers artificial intelligence tools rely on. This lack of real regulations is what allowed a hyperscale data center project along Camp Ground Road to easily win approval.The amendments aim to change that. And, like other rules in the code, they get specific on elements like tree preservation, setbacks from the roadways and other types of development-specific rules.For example, the draft changes break data center developments into three types:“Data Center” is a building primarily used for data services “including the storage, processing, management, and distribution of data through the use of computer systems, servers, networking equipment, and related components.”“Data Center, Accessory” is a data center building that serves another primary use on the same lot, such as a business or hospital. “Data Center, Telecommunication” is a data center specifically serving internet and phone companies regulated by the Federal Communications Commission.It’s important to note Jefferson County contains independent cities with their own zoning and development rules. That means Louisville Metro’s regulations won’t automatically apply to places like St. Matthews, Middletown and Jeffersontown, among others. Louisville Metro officials say its planners can assist those cities with preparing amendments to their zoning rules that “reflect the nature of the changes recommended,” if they ask.Residents may view the draft regulations and provide feedback online until early next month. After that, the Greenberg administration says it’ll review the responses and potentially make changes.The Louisville Metro Planning Commission will then review a final set of proposed regulations and offer changes. There will be an opportunity for additional public comment at that stage.At the end of the process is Metro Council, which will receive the draft and proposed changes from the Planning Commission. They’ll first go before the council’s Planning and Zoning Committee. The amendments will eventually need a majority of council members to vote in favor to become law.What do the rules say?The city is proposing to limit all new data center developments to 500,000 square feet or less.For comparison, the Camp Ground Road data center near Shively is expected to have around 1.6 million square feet of space across several buildings.The smallest data centers, 50,000 square feet or less, would be allowed with special restrictions in areas zoned for commercial manufacturing, research office districts and industrial areas.These developments would still be subject to many requirements, including:Disclosing all owners, partners and individuals or companies that have an interest in the data centerDisclosing what company or individual will be the primary user of the data centerMaximizing tree preservationMeeting a long list of energy efficiency standardsIf the data center doesn’t comply with all of these restrictions, it would have to get a conditional use permit, which requires a higher level of vetting, public comment and approval from the Planning Commission and Metro Council.The mid-sized data centers, which go up to 250,000 square feet, would only be allowed in industrial areas and industrial park zones called “Planned Employment Centers.” They would be required to meet similar requirements as the smaller ones, along with being farther from residential areas.Developers who are proposing data center projects between 250,000 and 500,000 square feet would have to go through the conditional use permitting process no matter what. They would only be allowed in areas zoned for the most intensive industrial uses, such as Rubbertown, and they would have to meet the same restrictions placed on smaller data centers.These projects would also be required to place any structures containing a data center, generators or a utility substation at least 200 feet from nearby homes, schools and childcare facilities.Residents talked. Did the city listen?Last year, residents and environmental groups expressed concerns at community feedback sessions about how data centers may worsen rising electricity costs, water usage and noise pollution. Nearly all the people who showed up outright opposed data centers being built anywhere in Louisville.“This summer it was so hot and they’re on the news telling us to turn our air conditioners off because there’s not enough power,” one Hikes Point resident told LPM News. “So there’s not enough power to run our air conditioners but we can build this giant data center that’s going to take God knows how much power and then charge us for it?”An online survey released by the city returned similar results. Of the roughly 3,600 survey responses, 81.5% of people chose “Nowhere in Jefferson County” when asked where developers should be allowed to build data centers.While these rules fall short of that — instead seeming to strike a balance between business and technology interests and resident pushback — they do attempt to address some of the most serious concerns surrounding data centers.All prospective developers would have to provide the city with “documentation demonstrating that public utility capacity and related infrastructure is, or will be made, available to ensure that the utility requirements of the Data Center can be accommodated without adverse effect on the cost of service to other customers.” In other words, they'll have to say why they believe their development won't raise utility rates.However, the regulations do not specify what would be considered sufficient evidence showing other LGE ratepayers wouldn’t be financially burdened by a project. Also, the regulations would apply to each project in isolation, meaning officials would not have to consider what approving several data centers could do to residents’ utility bills.All types of data centers would be required to limit noise at the property boundaries to 65 decibels, which is about the noise level of a typical conversation in a restaurant or office.The rules around noise pollution do not address extremely high- or low-frequency noise, called infrasound, which residents and environmental groups elsewhere have complained about recently, alleging it can disrupt sleep and overall health.As for water usage, the regulations encourage, but do not require, data centers to use a closed-loop water cooling system, which would conserve water and minimize waste. Data centers would not be allowed to get water from private wells unless they’re part of a high-efficiency geothermal heating and cooling system.The proposal does not directly address water consumption.Metro Council members say ‘devil is in the details’On Wednesday, Louisville Metro Council members began reaching out to their constituents via social media and newsletters.District 19 Council Member Anthony Piagentini, who heads the Republican Caucus, told LPM News he wants to hear what the public has to say “before they’re biased by what I’m going to say.”“I want to hear legitimately, with nobody biasing them, what does the public think, and then that will educate us on how to move forward,” he said.Piagentini said he does like some of the proposed regulations, but cautioned that “the devil is in the details.”Metro Council Member Shameka Parrish-Wright, a Democrat representing District 3 who is challenging Greenberg in the mayoral election, echoed that in a written statement Wednesday.“Based on my experience, these negotiations are hashed out in the details, including via definitions, exceptions, conditional use permits, enforcement, and future amendments,” she said.Parrish-Wright, however, shared more of her personal take on the draft rules. She argued the regulations need to be airtight.“Without anti-circumvention language, developers may simply redesign projects to suit their insatiable profit motive, at the expense of our natural resources,” she wrote.She also released a list of her own questions for the Greenberg administration after reading the proposal, including: What penalties exist for data centers that become a nuisance after the fact? How did the city reach its 500,000-square-feet threshold? And can smaller facilities be developed on adjacent parcels of land, forming a larger campus?
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