New Albany moves closer to one-year data center development ban

News Clip1:25WDRB News - Official·New Albany, Floyd County, IN·7/7/2026

The city of New Albany, Indiana, is moving closer to enacting a one-year moratorium on data center development. This temporary ban would allow the city to revise its zoning rules for data centers, as public sentiment appears to be against new projects if costs are passed to residents. The city council is expected to hold a final vote in July.

moratoriumzoninggovernmentopposition
Gov: New Albany City Council, New Albany Plan Commission, Planning and Zoning Committee

The city of New Albany, Indiana, is advancing a proposal for a one-year moratorium on data center development. The New Albany City Council's vote inches the city closer to implementing the ban, which is intended to provide the city and its Plan Commission sufficient time to update existing zoning regulations.

Richard Essex of WDRB News reported that the current zoning rules in New Albany are not equipped to handle "mega-type" data centers. While a developer has expressed interest in a plot of land for a data center, it is located in a flood plain. The city reportedly lacks open land for large operations comparable to the Meta site in nearby Jeffersonville, though space for smaller data centers may exist.

Public sentiment regarding data centers in New Albany is strongly negative, particularly concerning the potential for development costs to be passed on to residents. This sentiment was gathered through a special planning commission meeting and a survey included in the city's recent sewer bills.

The city council is anticipated to hold its final vote on the moratorium at its next meeting in July. The responsibility for developing new zoning rules will fall to the Planning and Zoning Committee.