LG&E announces first major data center electric customer
Louisville Gas and Electric Company (LG&E), a PPL subsidiary, has announced its first hyperscale data center electric customer through a joint venture between PowerHouse Data Centers and Poe Companies. The project will develop Kentucky's first 400-megawatt data center campus in Louisville, with the initial 130 megawatts becoming available in October 2026.
The development secured an initial power capacity of 335 megawatts, expandable to 402 megawatts, supported by a new LG&E switch station to be completed in September 2026. The project benefits from a 50-year tax exemption program approved by the Kentucky Legislature in 2024 for data centers in Louisville and Jefferson County. Construction will begin in 2025, with the first building operational by Q4 2026.
The campus will utilize Louisville Water Company's infrastructure and the Ohio River's water supply, averaging 75 billion gallons daily, for cooling and operational efficiency.
Louisville Gas and Electric Company (LG&E), una filiale di PPL, ha annunciato il suo primo cliente elettrico per i data center hyperscale attraverso una joint venture tra PowerHouse Data Centers e Poe Companies. Il progetto sviluppa il primo campus di data center da 400 megawatt nel Kentucky, con i primi 130 megawatt disponibili a partire da ottobre 2026.
Lo sviluppo ha ottenuto una capacità iniziale di 335 megawatt, ampliabile a 402 megawatt, supportata da una nuova stazione di commutazione LG&E che sarà completata a settembre 2026. Il progetto beneficia di un programma di esenzione fiscale di 50 anni approvato dalla Legislatura del Kentucky nel 2024 per i data center a Louisville e nella Contea di Jefferson. La costruzione inizierà nel 2025, con il primo edificio operativo entro il quarto trimestre del 2026.
Il campus utilizzerà l'infrastruttura della Louisville Water Company e la fornitura d'acqua del fiume Ohio, che average 75 miliardi di galloni al giorno, per il raffreddamento e l'efficienza operativa.
Louisville Gas and Electric Company (LG&E), una subsidiaria de PPL, ha anunciado su primer cliente eléctrico de un centro de datos hyperscale a través de una empresa conjunta entre PowerHouse Data Centers y Poe Companies. El proyecto desarrollará el primer campus de centros de datos de 400 megavatios en Kentucky, con los primeros 130 megavatios disponibles en octubre de 2026.
El desarrollo obtuvo una capacidad inicial de 335 megavatios, ampliable a 402 megavatios, respaldada por una nueva estación de conmutación de LG&E que se completará en septiembre de 2026. El proyecto se beneficia de un programa de exención fiscal de 50 años aprobado por la Legislatura de Kentucky en 2024 para centros de datos en Louisville y el Condado de Jefferson. La construcción comenzará en 2025, con el primer edificio operativo para el cuarto trimestre de 2026.
El campus utilizará la infraestructura de la Louisville Water Company y el suministro de agua del río Ohio, que promedia 75 mil millones de galones diarios, para el enfriamiento y la eficiencia operativa.
루이빌 가스 및 전기 회사 (LG&E)는 PPL의 자회사로서 파워하우스 데이터 센터와 포 기업 간의 합작 투자로 첫 하이퍼스케일 데이터 센터 전기 고객을 발표했습니다. 이 프로젝트는 루이빌에 400메가와트 데이터 센터 캠퍼스를 개발하며, 초기 130메가와트는 2026년 10월에 제공될 예정입니다.
개발은 335메가와트의 초기 전력 용량을 확보했으며, 402메가와트로 확장 가능하고, 2026년 9월에 완공될 LG&E 스위치 스테이션의 지원을 받습니다. 이 프로젝트는 2024년 켄터키 주 의회에 의해 루이빌과 제퍼슨 카운티의 데이터 센터를 위해 승인된 50년 세금 면제 프로그램의 혜택을 받습니다. 2025년에 건설이 시작되며, 첫 번째 건물은 2026년 4분기까지 운영될 예정입니다.
이 캠퍼스는 루이빌 워터 컴퍼니의 인프라와 오하이오 강의 수자원을 활용하며, 하루 평균 750억 갤런의 물을 냉각 및 운영 효율성을 위해 사용합니다.
Louisville Gas and Electric Company (LG&E), une filiale de PPL, a annoncé son premier client électrique pour un centre de données hyperscale grâce à une coentreprise entre PowerHouse Data Centers et Poe Companies. Le projet développera le premier campus de centre de données de 400 mégawatts dans le Kentucky, avec les premiers 130 mégawatts disponibles dès octobre 2026.
Ce développement a obtenu une capacité électrique initiale de 335 mégawatts, extensible à 402 mégawatts, soutenue par une nouvelle station de commutation LG&E qui sera achevée en septembre 2026. Le projet bénéficie d'un programme d'exemption fiscale de 50 ans approuvé par la législature du Kentucky en 2024 pour les centres de données à Louisville et dans le comté de Jefferson. La construction commencera en 2025, avec le premier bâtiment opérationnel au quatrième trimestre 2026.
Le campus utilisera l'infrastructure de la Louisville Water Company et l'approvisionnement en eau de la rivière Ohio, qui atteint en moyenne 75 milliards de gallons par jour, pour le refroidissement et l'efficacité opérationnelle.
Louisville Gas and Electric Company (LG&E), eine Tochtergesellschaft von PPL, hat ihren ersten hyperscale Rechenzentrums-Stromkunden durch ein Joint Venture zwischen PowerHouse Data Centers und Poe Companies angekündigt. Das Projekt wird den ersten 400-Megawatt-Rechenzentren Campus in Kentucky in Louisville entwickeln, wobei die ersten 130 Megawatt im Oktober 2026 verfügbar sein werden.
Die Entwicklung sicherte eine anfängliche Stromkapazität von 335 Megawatt, die auf 402 Megawatt erweiterbar ist, unterstützt durch eine neue LG&E-Schaltstation, die im September 2026 fertiggestellt werden soll. Das Projekt profitiert von einem 50-jährigen Steuererlassprogramm, das 2024 von der Gesetzgebung von Kentucky für Rechenzentren in Louisville und Jefferson County genehmigt wurde. Der Bau beginnt 2025, und das erste Gebäude wird im vierten Quartal 2026 betriebsbereit sein.
Der Campus wird die Infrastruktur der Louisville Water Company und die Wasserressourcen des Ohio River nutzen, die im Durchschnitt 75 Milliarden Gallonen pro Tag für Kühlung und Betriebseffizienz bieten.
- Secured major new customer for 400MW data center campus development
- Initial power capacity of 335MW with expansion potential to 402MW
- Project benefits from 50-year tax exemption program
- Strategic location between Mid-Atlantic markets and Midwest
- First building won't be operational until Q4 2026
- Significant infrastructure investment required (new switch station and substation)
Insights
This hyperscale data center project represents a major infrastructure development with significant revenue potential for PPL through its LG&E subsidiary. The 400-megawatt campus will be one of the largest data center developments in the region, with the first phase delivering 130 megawatts by October 2026. The secured power capacity of 335 megawatts with expansion potential to 402 megawatts indicates substantial long-term electricity consumption and revenue generation.
The strategic location at the crossroads of Mid-Atlantic and Midwest markets, combined with the 50-year tax exemption program, positions this project favorably against competing markets. The site's access to abundant water resources from the Ohio River (75 billion gallons daily) provides important cooling capacity for high-density computing operations, addressing a critical infrastructure requirement that often constrains data center developments.
The hyperscale data center partnership presents a significant revenue opportunity for PPL Data centers are among the most energy-intensive customers for utilities, with consistent base load demand and high reliability requirements. Based on industry standards, a 400-megawatt data center campus typically generates annual revenue between
The dedicated switch station and on-site substation investment signals LG&E's commitment to supporting large-scale industrial customers, while potentially creating opportunities for grid modernization and infrastructure upgrades. The 50-year tax exemption program enhances the project's long-term viability and could attract additional data center developments to the service territory, further expanding PPL's industrial customer base.
This development positions PPL strategically in the rapidly growing data center market. The timing aligns with increased demand for data center capacity driven by AI computing requirements and digital transformation initiatives. The project's scale and location could establish Louisville as a new tier-2 data center market, potentially attracting additional technology investments to PPL's service territory.
The partnership with established developers like PowerHouse and Poe Companies reduces execution risk. PowerHouse's track record in major markets and Poe's local expertise create a strong foundation for project success. The secured power capacity and existing zoning approvals significantly de-risk the development timeline, with operations scheduled to begin in Q4 2026. This positions PPL to capture growth in the data center sector while diversifying its industrial customer base.
LG&E's new utility partnership with Poe Companies and PowerHouse Data Centers sets stage for
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
"We are proud to serve
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
"
"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
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 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
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
FAQ
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