Ludlow City Council approved an ordinance last week that imposes a one-year moratorium on accepting applications for IT-related infrastructure facilities such as data centers.
Data centers are large facilities that store, process and manage information. Cities often promote them as economic drivers, and the sector has expanded rapidly nationwide as demand from artificial intelligence accelerates.
After some Ludlow residents raised concerns about the possibility of a local data center, Ludlow officials decided to pursue a pause that would allow the city to strengthen its regulatory framework.
Mayor Sarah Thompson said that anything that is commercially zoned in Ludlow allows for data centers.
Click here for more Ludlow news
“You can actually go and look at our Z21, and you can see what those areas might be, and they are zoned with PDS,” Thompson said. The Z21 Zoning Code is the City of Ludlow’s updated zoning ordinance, adopted in 2026 to replace the city’s former code. It was created by the Z21 Committee in partnership with the Kenton County Planning Commission and advanced through the formal procedures required under Kentucky Revised Statutes. A copy of Ludlow’s Z21 blueprint can be found here.
Thompson also said that city attorneys are preparing an application to begin drafting the amendments to the zoning regulations during the moratorium period.
“The goal is to have the updated zoning language completed and approved before the moratorium expires,” Thompson said. “Our attorneys also expect to meet with PDS, and because other Northern Kentucky communities are exploring similar measures, there may be opportunities to collaborate on a regional approach.”
City officials say the moratorium is necessary because Ludlow’s zoning ordinance and comprehensive plan do not currently address data‑center development, and the pause will give the city time to update its regulations so future proposals align with long‑term goals, sustainability priorities, and community wellbeing.
Data‑center proposals are already emerging across the state. In Carroll County, two projects totaling $13.6 million have been introduced: PowerHouse Data Centers has proposed a $9.6 billion project development just off of Interstate 71 in Carrollton, and DECA Companies has proposed a several‑hundred‑acre site on Sharon Road. In Mercer County, a private 550‑acre property near Burgin and the E.W. Brown Generating Station is being marketed as a potential data‑center location.
Thompson and several members of the city council have made clear that they do not want data centers in Ludlow. Thompson said she has reviewed concerns raised in other cities that host data centers, along with worries expressed by local residents.
Thompson said that Ludlow wants to utilize the Kenton County Planning Commission to review the impacts of data center uses and impacts such as electricity, ground pollution, and water pollution, as well as the evaluation of the appropriate zoning districts and regulations and amendments for consideration.
“We’re a small town,” said Councilmember Paula Graszus. “We want to keep a small-town feel. Do we need the economic help? Yes, we do. But we’re going to find it somewhere else.”
Councilmember Meagan Guthrie said that when the 12‑month period ends, if the council wants to keep the moratorium in place, they’ll need to make sure the proper protections and language are fully in place. Guthrie said that the moratorium gives Ludlow time to gather information and ensure protections are in place.
“I think part of it is that data centers are so new and what that conversation looks like for Ludlow and putting a pause on it now so that we’re making sure we’re protecting ourselves for the future and to collect that information,” Guthrie stated.
There is a special meeting on Aug. 5, 2026, at the Ludlow Municipal Center on Elm Street at 7 p.m., and it is open to the public. The topic is related to special ad valorem tax for Fire Protection and Emergency Medical Services.
