06/09/2026
PRESSING PAUSE ON DATA CENTERS: Mayor Gahan Asks New Albany Council for Moratorium on New Data Center Development
This week, Mayor Gahan is urging the New Albany Common Council to establish a moratorium on the construction of new data centers within the City and its two-mile fringe planning jurisdiction.
If approved, the moratorium would remain in effect for one year while City officials complete a comprehensive review of how data center development could impact local infrastructure, land use planning, utility costs, environmental effects, and the long-term goals outlined in New Albany's recently adopted Comprehensive Plan.
The proposed ordinance would provide City leaders, planning professionals, and the public with the opportunity to evaluate appropriate standards and regulations before this emerging form of development occurs locally.
"New Albany has a limited amount of land, and this pause allows us to thoroughly examine the impacts of data centers,” said Mayor Jeff Gahan.
City Councilperson Elaine Murphy has agreed to sponsor the ordinance that has been drafted, and had the following comments: “Before a data center can be built in our city, we would first need to know the economic and environmental impacts. Big corporations are benefiting from tax exemptions for their data centers and they are profiting hand over fist. We need to be watchful and make sure there are no negative consequences for the citizens of New Albany.”
During the moratorium period, the City's Department of Planning and Zoning and Plan Commission would be asked to study the potential effects of data centers on public infrastructure, municipal services, economic development, utility costs, environmental effects, and neighborhood character. The findings would help inform updates to the City's zoning ordinance and establish clear expectations for any future proposals.
Data centers have become increasingly common in Indiana as demand for cloud computing, digital services, and artificial intelligence technologies continues to grow. The “Big Beautiful Bill” has also allocated many dollars and resources to expand data centers throughout rural and urban areas in Indiana. These facilities can require significant infrastructure investments, including enhanced electrical capacity, backup power systems, cooling equipment, and other specialized support systems.
City officials emphasized that the proposed moratorium is intended to ensure New Albany is proactive rather than reactive when considering these types of projects.
"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,” stated Mayor Gahan. “I would hope all elected county officials and state representatives would take the same action and stand up for Hoosier residents, especially those who live in Southern Indiana.”
The ordinance will be considered by the New Albany Common Council at an upcoming public meeting.
