LG&E announces first major data center electric customer

LG&E's new utility partnership with Poe Companies and PowerHouse Data Centers sets stage for Kentucky's first hyperscale data center campus

LOUISVILLE, Ky., Jan. 16, 2025 /PRNewswire/ -- Louisville Gas and Electric Company, a subsidiary of PPL Corporation, announced today its first hyperscale data center electric customer.

A joint venture between PowerHouse Data Centers, a leading real estate developer for next-generation hyperscale data centers and division of American Real Estate Partners (AREP), and Poe Companies, a Louisville-based real estate developer with properties in Kentucky and across the U.S., was announced earlier today. The joint venture is developing Kentucky's cutting-edge 400-megawatt data center campus which will be located in Louisville. The first 130 megawatts will be available in October 2026.

"We are proud to serve Kentucky's first hyperscale data center campus," said John R. Crockett, president of LG&E and KU and chief business development officer for PPL Corporation. "This groundbreaking project will be historic for Kentucky and a continuation of new economic development announcements that are happening throughout the Commonwealth. We're thankful for the Poe Companies and PowerHouse Data Centers teams for their vision and commitment to making this happen in Louisville and applaud the legislature and Governor Beshear for passing the enabling legislation that puts Kentucky on the data center map."

The joint venture between Poe and PowerHouse combines both companies' shared expertise, values, and vision for the campus and future development in the region. Poe is a distinguished real estate developer with a deep and proven record in delivering premium properties. Similarly, PowerHouse brings a successful track record of delivering real estate strategy and development across major markets nationwide.

 In 2024, the Kentucky Legislature approved a 50-year tax exemption program for data center projects located within Louisville and Jefferson County. Kentucky and the surrounding area have emerged as a key location for data centers seeking low-latency peering, and due to its location at the crossroads between the Mid-Atlantic markets and the Midwest.

"Louisville offers everything hyperscale users need in the market – immediate and reliable power at very attractive rates, water, connectivity and a business environment that encourages more hyperscale growth in the region," said Doug Fleit, co-founder and CEO of PowerHouse. "The experience of working with Louisville Gas and Electric, the utility serving the site, has been a model for other utilities in the country to follow as well as a testament to Poe Companies' relationships in the community and the market." 

"Poe Companies is honored to partner with PowerHouse Data Centers, a truly world class data center developer, on this transformative project," said Steve Poe, CEO of Poe Companies. "Our combined expertise and shared vision for innovation continues to position Louisville as a key hub for cutting-edge digital infrastructure."

Displaying one of its core strengths as a developer, PowerHouse and Poe have secured access to an initial power capacity of 335 megawatts for this campus with near-term expansion up to 402 megawatts. The power supply will be supported by a new LG&E switch station, to be completed in September 2026, and a dedicated on-site substation. The campus will also benefit from access to the Louisville Water Company's strong infrastructure system and excess capacity with its water treatment system as well as the Ohio River, with an average of 75 billion gallons flowing by Louisville daily, ensuring effective cooling and operational efficiency for high-density computing needs. With all essential zoning in place, the site will begin construction in 2025 with the first building scheduled to be operational by the fourth quarter 2026.

Louisville Gas and Electric Company and Kentucky Utilities Company, part of the PPL Corporation (NYSE: PPL) family of companies, are regulated utilities that serve more than 1.3 million customers and have consistently ranked among the best companies for customer service in the United States. LG&E serves 335,000 natural gas and 436,000 electric customers in Louisville and 16 surrounding counties. KU serves 545,000 customers in 77 Kentucky counties and 28,000 in five counties in Virginia. More information is available at www.lge-ku.com and www.pplweb.com.

For more information:
Contact the LG&E and KU 24/7 media hotline at (502) 627-4999.

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SOURCE Louisville Gas and Electric and Kentucky Utilities