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In order to meet customers’ around-the-clock needs, LG&E and KU operate a complex network of modern power generating stations, natural gas compressor stations, electric substations, electric and gas lines, transformers and related equipment. Photo furnished by LG&E
Record-breaking economic growth across Kentucky is catching attention, and competitive energy rates and accessible utility infrastructure add to the state’s appeal.
The state’s largest utilities, Louisville Gas and Electric Company and Kentucky Utilities Company, forecasted last fall in their Integrated Resource Plan filed with the Kentucky Public Service Commission that economic development will increase their energy system load by 30 to 45 percent by 2032, when compared to 2024.
The utilities’ forecast remains on pace. Current discussions with businesses, all total, in the coming years have the potential generation need of up to 8,000 megawatts, more than double the utilities’ current capacity. LG&E and KU are required as regulated utilities to serve this new economic development load in the most reasonable least-cost manner.
“We are pleased that our affordable generation and state regulations are encouraging growth that benefits all Kentuckians by bringing more jobs and additional tax revenue to the Commonwealth,” said John R. Crockett, president of LG&E and KU and chief development officer for PPL Corporation. “Since the announcement of BlueOval SK, we have seen new and expanded manufacturing in our service territory. Now we’re seeing unprecedented interest in locating data centers to Kentucky. When these large businesses choose Kentucky, it benefits all our customers."
Plans for Kentucky’s first cutting-edge 400-megawatt data center campus were just announced in January. It will be located in Louisville, and it’s 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. The first 130 megawatts will be available in October 2026.
“We are proud to serve Kentucky’s first hyperscale data center campus,” added Crockett. “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 Kentucky Legislature and Governor Beshear approved in 2024 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.
Investing in reliability, balance and flexibility
In order to meet customers’ around-the-clock needs, LG&E and KU operate a complex network of modern power generating stations, natural gas compressor stations, electric substations, electric and gas lines, transformers and related equipment.
As part of the utilities’ long-term investment plans, they’re constructing Mill Creek 5, a 640-megawatt natural gas combined-cycle generating unit in Jefferson County. It will be the utilities’ most efficient and advanced unit in their power plant fleet, and it’s expected to begin powering customers’ homes and businesses in 2027.
In addition, the utilities asked for approval from the KPSC this month to add two comparable highly efficient 645-megawatt natural gas combined-cycle units, more environmental technologies at Ghent Generating Station to extend the life of Unit 2 and 400 additional megawatts of battery storage.
Battery storage is a key component of a modern energy system, allowing for better management of power supply and increased reliability at all times of the day. Given the rapid pace of Kentucky’s economic development projects, adding battery storage and environmental controls also will allow the utilities to increase their generation capacity sooner.
“These investments in our system will allow us to continue serving our customers safely and reliably while meeting our regulatory obligation and the growing economic interest in the Commonwealth – all while maintaining affordability,” said Crockett.
Visit lge-ku.com/investments to learn more about LG&E and KU’s long-term plans to power Kentucky’s energy future.