NEW ALBANY, Ind. (WDRB) — The proposed one-year moratorium on new data center construction moved one step closer to becoming official Monday after the New Albany City Council advanced the measure to a final vote.

If approved July 16, the ordinance would block new data centers larger than 100,000 square feet in the city, along with campuses made up of multiple buildings that total more than 100,000 square feet.

Mayor Jeff Gahan proposed the mortarium June 9, saying it would help the city "thoroughly examine the impacts of data centers."

Last month, the New Albany Plan Commission recommended the proposal after hearing from residents during a public meeting.

"By studying this issue now, we can keep our residents informed about the potential benefits and pitfalls of the Great Data Center Expansion in and around our River City," Gahan said.

The topic of data centers has become increasingly contentious in southern Indiana. Between the strain on power grids, rising utility bills and massive water consumption, some residents also worry about privacy and government overreach.

City leaders have said New Albany doesn't have room for a massive campus, like the $800 million Meta data center under construction in nearby Jeffersonville. But they said smaller facilities could still be proposed under current zoning.

Officials also pointed to comments from residents and responses to a survey included with recent sewer bills. Many said they want the city to establish clearer zoning rules before allowing new data center projects.

Computer engineer David McOwen, who previously worked in the data center industry, said the city has a chance to get ahead of the issue.

"They have the chance to dictate how, when and where it happens and not be blindsided," McOwen said.

The council is expected to make its final decision during its July 16 meeting.

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