LaGrange punts on data center restrictions, deciding to handle them on a case-by-case basis via special-use permit

After months of planning and discussion, the LaGrange City Council has decided against implementing broad restrictions on data centers within city limits. Instead, the council voted 3-2 to approve a new ordinance that requires all data centers in industrial zones to obtain a special-use permit, allowing for case-by-case evaluation and public hearings. Initially, City Planner Mark Kostial presented regulations that would have differentiated between non-hyperscale and hyperscale data centers, with stricter placement rules for larger facilities. However, council members, including Darby Pippin, Ameia Cotton Williams, and Mark Mitchell, advocated for a special-use permit requirement for all data centers, regardless of size. Councilman Leon Childs recused himself from later discussions due to his employer, Groundswell, being backed by Google, which owns a data center currently under construction in LaGrange. Proponents of the special-use permit approach, like Mitchell, emphasized that it would ensure public hearings, allowing both supporters and opponents to voice their opinions. This process would also enable City Manager Patrick Bowie to assess whether the city could provide adequate water and power for proposed projects. City Attorney Jeff Todd clarified that while the city couldn't outright ban lawful businesses like cryptocurrency mining, specific site-related conditions could be imposed through the special-use permits. The substitute ordinance, which passed with votes from Mitchell, Pippin, and Steve Pardue, aims to provide robust oversight. Pippin highlighted public concerns about a past data center project that residents felt had "slipped through the cracks." The new process will involve multiple governmental bodies, including the Development Authority and the Board of Planning and Zoning, ensuring comprehensive review and public advertisement before a final council decision.