LOUISVILLE, Ky. (WDRB/WAVE) — Jeffersonville City Council passed a swift blow to new data center development. With a vote of 8-0, the council halted development for new data centers for one year.
The council suspended its standard rules to push the ordinance through three required readings in a single session. The aim is to block developers from rushing to submit applications before regulations can be drafted.
While the city administration initially proposed a six-month pause, Councilmember Jackie Snelling suggested the council move that to a full year. This pushes the expiration to mid-2027 and ensures the planning commission has ample time to craft permanent zoning rules before the state legislature is back in session.
Meta is exempt?
Residents packed the chambers while city leaders addressed a new key legal reality: the new moratorium will not effect the massive Meta data center currently under construction at the River Ridge Commerce Center.
Because River Ridge sits on the site of the former Indiana Army Ammunition Plant, the federal and state military control its land use via reuse statutes.
Under a decades-old interlocal agreement, the River Ridge Development Authority holds ultimate zoning authority over the land.
This means the City of Jeffersonville has no legal power to approve or deny business uses inside those boundaries.
Furthermore, because River Ridge is a Tax Increment Financing (TIF) district, the property taxes paid by Meta will remain within the commerce center to fund industrial infrastructure, rather than flowing into local schools or general city funds.
The plan for future data centers
To protect neighborhoods from future developments, Councilmember Dustin White proposed a strategy for zoning that allows the Planning Commission to write into the permanent Unified Development Ordinance.
Currently, data centers are permitted in any industrial zone, some of which sit directly adjacent to residential areas. These include America Place and the old Jeffboat site.
Under the proposed plan, data centers would be stripped from permitted use in standard industrial zones and restricted to a newly created “Special Data Center Overlay District.”
Any future developments would face strict mandates, including physical berms and significant buffers from residential properties.
Financial gains vs. public grievances
During the meeting, city officials disclosed several concrete financial metrics tied to the Meta project:
- $4 million paid upfront to the Jeffersonville Wastewater Department in capacity fees.
- $300,000 to $400,000 projected in monthly recurring sewer utility revenue once fully operational.
- Local income taxes collected from the estimated 12,000 industrial park workers and construction staff, helping offset property tax abatements.
The residents voiced fierce opposition to data center expansion despite these financials.
Neighbors living near the Meta site testified about decibel generator testing causing severe noise pollution and raised concerns about heat impacting local HVAC systems.
Local utility customers expressed outrage over contracts showing that in the event of a natural disaster, Meta’s water supply takes precedence over local residential water.
Many stated that they felt, “bamboozled” by the closed negotiations in 2022 that bypassed public hearings and yielded only 100 promised permanent jobs while weighing heavily on local infrastructure.
Riders of local utilities also expressed outrage over contracts showing that in the event of a natural disaster, Meta’s water supply takes precedence over local residential water. Many residents stated they felt “bamboozled” by the confidential 2022 negotiation process that bypassed public hearings and yielded only 100 promised permanent jobs while heavily burdening local infrastructure.
During the moratorium, the city will work to draft regulations.
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