New Joint Venture Sets Stage for Cutting-Edge Hyperscale Data Center Campus in Louisville
LOUISVILLE, Ky., Jan. 16, 2025 /PRNewswire/ -- PowerHouse Data Centers, a leading real estate developer for next-generation hyperscale data centers and division of American Real Estate Partners (AREP), along with Poe Companies are pleased to announce plans for their new 400 MW data center campus in Louisville, Kentucky. The first 130 MW will be available in October 2026. The development will set a new standard for data center infrastructure and reliability, addressing both cloud and AI computing to meet the growing hyperscale demand.
The joint venture partnership 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 in Louisville and across the United States. Similarly, PowerHouse brings a successful track record of delivering thoughtful real estate strategy and development across major markets nationwide. The leadership of these firms, along with the forward-looking collaboration of the local community, the state of Kentucky and the local water and utility providers, establishes a campus that enables recruitment and fast-tracked operations for new hyperscale tenants that will benefit the entire region.
Through legislative and executive branch cooperation, Kentucky recently approved a 50-year tax-exempt program for data center projects in Jefferson County. Kentucky and the surrounding area have emerged as a key location for data centers seeking low-latency peering. Kentucky is located at the crossroads between the Mid-Atlantic markets and the Midwest.
"Louisville offers everything hyperscale users need – 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 (LG&E), 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 MW for this campus with near-term expansion of up to 402 MW. The power supply will be supported by a new switch station to be built by LG&E and completed in September 2026, along with a dedicated on-site substation.
"This new data center will create thousands of good-paying jobs here in Louisville," said Louisville Mayor Craig Greenberg. "As the need for data centers grows, Louisville is perfectly positioned to meet the demands of the tech sector."
The campus will also benefit from access to the Louisville Water Company's strong infrastructure system and excess capacity with its water treatment system and 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, and the first building is scheduled to be operational by Q4 2026.
"We are proud to serve Kentucky's first hyperscale data center," 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 announcements happening throughout the Commonwealth."
Senate President Robert Stivers, R-Manchester, agreed. "This project is a game-changer, driving long-term economic growth in our major metropolitan center and boosting Kentucky as a regional business driver."
"Attracting hyperscale operators to any location requires a different set of tools than most other industries," said Jeff Noel, Secretary for Economic Development. "This announcement is a critical milestone from great leadership to assure all elements needed to begin successful operations are available."
This announcement marks the seventh new data center development project for PowerHouse in 12 months. The Louisville project adds to 87 data center buildings planned, underway or already delivered.
About PowerHouse Data Centers
PowerHouse Data Centers, a wholly owned division of American Real Estate Partners (AREP), is a developer and owner of next-generation data centers and provides technical real estate solutions for hyperscalers across the country. Starting in Northern Virginia's Data Center Alley, the world's largest data center market, before strategically expanding to key markets across the United States, PowerHouse owns its land sites, offering unparalleled fast-track approvals and zoning approvals in its full suite of development services. As an industry disruptor, PowerHouse provides flexible next-generation data center models with the quickest speed to market of any data center while meeting hyperscalers' growing market, data, utility, and space demands. The company has 87 buildings and 25.5M sqft currently in planning, underway or completed, representing over 5.9 GW of power in six major US markets. Operating as the data center division of AREP, PowerHouse is uniquely positioned as a leader in world-class data center development. With some of the industry's deepest real estate relationships, PowerHouse leverages its strategic joint venture partnerships, proven leadership, and best-in-class technical expertise to deliver innovative real estate solutions nationwide. Visit our newsroom for more information, and follow us on LinkedIn, YouTube, and X.
About Poe Companies
Poe Companies is a premier real estate development firm with over 37 years of experience in creating high-quality properties across the United States. Specializing in multifamily, industrial, and hospitality developments, Poe Companies has delivered over $2 billion in real estate projects, consistently setting the standard for innovative, high-barrier-to-entry developments in growing downtowns and affluent suburban markets. Headquartered in Louisville, Kentucky, Poe Companies is known for its dedication to excellence, strategic partnerships, and a commitment to building vibrant communities. Visit poecompanies.com.
SOURCE PowerHouse Data Centers
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