Kentucky to Host $11.1 Billion Hyperscale Data Center Amid Growing Local Concerns

Kentucky is set to welcome its first hyperscale data center, a $11.1 billion joint venture between PowerHouse Data Centers and Poe Companies, with a planned opening in late 2026. The 525-megawatt campus is part of a broader surge in data center developments in the state, driven by recent tax incentives aimed at attracting such projects.

Despite the economic potential, local governments and citizens express concerns regarding water and electricity demands and the size of these facilities. Several proposed data centers, including a contentious $6 billion project in Oldham County, have faced public opposition, leading to regulatory scrutiny and moratoriums in some areas.

LG&E and KU are expanding power generation capacity to accommodate these developments, with 20 data center projects under consideration across 90 counties. The Kentucky legislature has approved sales tax exemptions for data centers, enhancing the state's appeal for future investments.