By: Nathan Ohle, President and CEO, International Economic Development Council
Last week, I had the opportunity to spend a few days in Greater Louisville, meeting with stakeholders from across the region. Getting out into communities is always my favorite part of leading the International Economic Development Council (IEDC), and I always end up taking away more than I can possibly give back to the community. This was no exception.
The Greater Louisville region is actually very unique in that it is a multi-state region. Southern Indiana and northern Kentucky (Louisville and surrounding communities in Kentucky and Indiana) work very closely together. You have two states working with one another, as opposed to competing with one another as is typically seen in economic development. In a time of heightened uncertainly around the economy, this partnership and collaboration is even more critical.
You see this connectivity in every part of the region. The electric and water utilities work very closely together, forming a strong partnership that allows for projects to be expedited. Both utilities also operate regionally, giving them a unique perspective on the needs of their customers and the region itself. The economic development community is working together across regional and state boundaries. We visited locations in both Southern Indiana and throughout the Louisville area, where both talked about their partnership and ability to talk about policy with two very different states and different approaches to economic development. And perhaps most importantly, leaders from across the region are connecting on a regular basis, ensuring they think about regional assets as part of the offerings for businesses, communities and the entire region to grow and drive economic prosperity.
Not surprisingly, power and transportation were both big topics of conversation. Louisville is the home of UPS Worldport, where more than 4 million packages are processed and 300 flights are conducted each day. UPS talked specifically about the central location of Louisville, the partnership they have with the local airport, and the talent and workforce they can draw from for their single biggest investment across the world. The electricity needs of the region for potential new projects is huge, well beyond anything they have experienced in the past. This is not just for potential data center investments, it is also for manufacturing projects.
According to the Electric Power Institute and Epoch AI’s new report, U.S. AI power capacity could take up as much as 50 GW and consume more than 5 percent of the U.S. generation capacity by 2030, with the potential to reach as much as 200 GW by 2050. In the Louisville region alone, the current pipeline of projects would need more than 8.5 GW of power. A unique strength of Louisville is that their regional utility has the ability to generate, transmit, and distribute power, giving them more autonomy and an ability to cut through red tape, which can facilitate more transformative investments.
In an ever-changing business climate, places like Louisville are ahead of the curve. They are thinking regionally, building supply chains that can support an evolving environment, and they are working across state lines to bring bold new approaches and ideas to economic development. They are working wisely and collaboratively as a region.
Thanks to the Greater Louisville, Inc. team for hosting such an impactful few days in the region, and for the work they and so many others are doing to build a regional approach that drives economic prosperity for all.