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
