The New Orleans City Council voted unanimously Wednesday (Jan. 28) to temporarily ban the construction of data centers in the city — a ban council members say will likely become permanent.
The special meeting to consider the future of data center development projects in the city was called shortly after news broke about a proposed data center in New Orleans East, near Interstate 10 and Read Boulevard, and many homes.
In a 6-0 vote, the council passed a one-year ban on data center projects. That period will provide the council with the necessary time to define data centers and then devise a way to effectively prohibit them.
Nearby residents, Mayor Helena Moreno and several council members voiced their opposition to the proposal, citing the burgeoning national and statewide growth of data centers and the costs involved, such as the strain on water and energy resources.
But some residents who spoke during a public comment period, and the Sierra Club’s Delta Chapter, expressed concern ranging from skepticism to distrust over the real intent behind the measure.
Data centers are not currently defined under the city code. That means potential projects — like the MS Solar Grid Data facility in New Orleans East — could apply for zoning permits under different uses, claiming to be an “office space with computers” instead. The measure also includes server farms and so-called crypto mining operations.
Council President J.P. Morrell said it’s the council’s job to protect the city from potential harm, and believes data centers are uniquely incompatible with a city with the geography of New Orleans.
“We have limited land, we have very little industrial space. Bitcoin mines are devastating the public health, and data centers have tremendous effects on water availability and damage to the grid,” Morrell said. “We are not a sprawling, 700-mile parish; we’re New Orleans. If you put any of that stuff in this parish, it is going to detrimentally affect the livelihoods of people.”
The temporary ban on data centers was made possible by a second measure that passed, which creates an Interim Zoning District (IZD), pausing all approvals for data centers. The city charter allows for that to be extended further, and Morrell explained that it’s the formal process required to review and later codify zoning standards and regulations. The City Planning Commission is also now tasked with preparing recommendations on data centers that will be presented before the full City Council this spring. From there, it would likely take the council members a few months to decide on and enact those recommendations.
Morrell said the unanimous opposition to data centers on the city council and from Mayor Moreno means they’re essentially just developing the legal framework to block them outright.
“It’s evident that technology is moving faster than cities can legislate, and we’re trying to get ahead of this,” he said. “We are trying to make sure that this kind of thing isn’t happening, and that we are going to create a process to actively prohibit it.”
District E Councilman Jason Hughes, who represents much of the East and co-sponsored both measures, is also a strong opponent of the project and the idea of data centers in the East in general. “We are committed to meaningful development in District E. But let me just put everyone on notice — if you don’t want something in your backyard, don’t put it in the backyards of my hardworking residents,” Hughes said.
During the public comment period, Sierra Club Delta Chair Angelle Bradford Rosenberg expressed concern that the process of legally defining data centers — and establishing regulations or zoning standards — could create a type of backdoor where the projects can gain approval anyway.
She also asked the council members why they didn’t just ban data centers outright, and why a yearlong study of the environmental impacts of data centers was necessary when a steady-growing collection of research already bears them out. Shortly after she finished speaking, Hughes began a disagreement with the Sierra Club Delta chair that devolved into a back-and-forth lasting several minutes. “You’ve said there’s a lot of confusion in the public, I’m going to say, respectfully, your organization has really created it,” Hughes told her.
“I got several calls from members of the public just yesterday who were very confused and armed with misinformation,” Hughes said. “And 95% of them said, ‘I had interaction or communication with the Sierra Club.’” Bradford Rosenberg quickly disagreed and responded that she’d already clarified her concerns that the appeals process during permitting could be a potential backdoor. Morrell assured her there was no backdoor available, igniting a back-and-forth exchange between those two. “Madam, you are being obstinate and not listening to facts,” Morrell said.
“Yeah, because you guys are being jerks. So I don’t need to stand here and deal with it,” Bradford Rosenberg replied, and returned to her seat.
Shortly after the meeting concluded, the Sierra Club’s Delta Chapter released a statement that said their concerns about the utility and functions of the temporary IZD remain. “We will continue to follow policy as it pertains to data centers in New Orleans and across Louisiana, as we have done, even before some of these councilmembers who disrespected and yelled at our chair this morning knew about the data center in the East,” the statement said.
“It is a shame when officials believe that disagreements about process, inquiries and concerns are a threat to their end game, so they berate residents and volunteers.”
There are currently two data centers in New Orleans and more than 20 being planned or constructed across Louisiana.
Hours after the special council meeting concluded, the developer behind the proposed New Orleans East project pulled his zoning permit, citing the council’s motions toward at least a one-year moratorium.
