New Orleans planning staff recommends ban on hyperscale data centers
New Orleans planning staff is recommending a citywide ban on large and hyperscale data centers, proposing to allow only smaller facilities under new zoning restrictions. This move addresses concerns about high energy and water consumption and the city's current lack of specific data center regulations. The proposal requires utility capacity reviews for any permitted data centers.
Planning staff in New Orleans have recommended a citywide ban on large and hyperscale data centers, classifying facilities over 100,000 square feet and exceeding 20 megawatts of electricity as prohibited. This proposal, outlined in a preliminary City Planning Commission report, aims to prevent such high energy and water-use facilities from overwhelming existing municipal infrastructure.
Under the proposed zoning restrictions, smaller data centers, capped at 100,000 square feet and 20 megawatts, could be conditionally permitted in specific commercial, industrial, and downtown districts. Applications for these facilities would necessitate comprehensive utility capacity reviews by Entergy New Orleans, the Sewerage and Water Board, and the City Council Utility Regulatory Office.
These recommendations emerged from a prior debate concerning a potential data center in New Orleans East, which exposed the city's lack of explicit zoning regulations for data centers. Planning officials underscored that data centers' significant impacts on energy and water resources necessitate unique regulatory oversight.