New Orleans City Planning Commission delays hyperscale data center ban

The New Orleans City Planning Commission is currently working on new regulations for data centers in the state. The commission has decided to hold off on new guidelines, specifically delaying a vote on a proposed citywide ban targeting large, hyperscale data centers.

Officials are considering this ban due to significant concerns that hyperscale centers, defined as consuming over 20 megawatts of electricity, could have devastating impacts on communities. These impacts include straining local supplies of energy and water, and potentially creating major issues with air quality, noise, and water quality for nearby residents. The sentiment is that these large facilities with onsite power generation represent a major threat.

Conversely, Governor Jeff Landry highlighted the economic benefits of data center development in the state, specifically mentioning a project in Richland that is expected to create 7,500 construction jobs, 1,000 permanent high-paying jobs, and nearly 1,900 additional indirect jobs. While a ban on larger centers is being debated in New Orleans, smaller facilities would still be permitted under the new zoning regulations. These regulations stipulate that all data centers must be three blocks away from residential zoned properties in industrial districts, 500 feet from one another, and only one data center is allowed per building in the Central Business District.

The City Planning Commission is requesting more information to be released to the public before holding a vote, ensuring residents fully understand what would be allowed in their neighborhoods. Commissioners also seek clarification on the different categories of data centers to explain what will be permitted.