New Albany takes next step toward 1-year data center moratorium

LOUISVILLE, Ky. (WDRB) — The city of New Albany, Indiana, had its first reading Thursday night on a proposed moratorium on new data center construction.

The proposal, which Mayor Jeff Gahan announced June 9, would pause all new data center development in the city for a full year while officials study how large-scale facilities could affect the city.

The temporary pause would give the New Albany City Council and the city’s planning and zoning department time to review whether current zoning regulations adequately address future data center proposals.

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.

"It’s more in surveillance. It’s more control and it’s more government control,” resident William Spangler said. "And that’s not what our government was founded on."

Data centers come in many different sizes. New Albany's current zoning rules would not allow a massive facility — such as the $800 million Meta Data Center that's set to open in Jeffersonville's River Ridge Commerce — to be built in the area, but officials said the moratorium would allow time to better prepare for future proposals.

Others said they support slowing the process so city leaders and residents can better understand the potential impacts.

"I think at this point, I need more information to make an informed decision," another resident said. "I would definitely support the moratorium just so that we can gather additional information."

While Spangler isn't fully opposed to data centers, he said the technology comes with tradeoffs.

"You support it if it’s used for the right way," Spangler said. "As long as everything can be good, everything can be used for bad."

New Albany is not alone in slowing data center development. The same day its proposal was announced, the Louisville Metro Planning Commission announced its own drafted regulations that would ban hyperscale data centers in the city and set strict rules for smaller developments.

Boone County, where Meta is building a $10 billion data center, also approved a one-year pause, and Indianapolis has also taken steps to slow development.

The Louisville proposal is currently in its 30-day review period while the city gathers public feedback. The community is encouraged to submit their comments here.

This was just the first reading of the proposal. New Albany will hold a public meeting on the moratorium Monday, June 22, at 2 p.m. at city hall.