New Albany approves pause on data center development

News ClipThe Courier-Journal·New Albany, Floyd County, IN·7/17/2026

The New Albany City Council unanimously approved a one-year moratorium on data center development. This pause will allow city officials to review potential impacts on infrastructure, utilities, environmental resources, and noise. The decision follows calls from Mayor Jeff Gahan and public concerns raised by residents.

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Gov: New Albany City Council, Mayor Jeff Gahan, Department of Planning and Zoning, Plan Commission, City Councilperson Elaine Murphy

The New Albany City Council unanimously approved a one-year moratorium on new data center development during its July 16 meeting. This decision grants city officials a temporary pause to thoroughly assess the potential impacts of data centers on local infrastructure, utilities, environmental resources, and community noise levels.

Mayor Jeff Gahan had initially called for such a moratorium on June 9, citing the city's limited land and the need for a comprehensive examination. The Department of Planning and Zoning and the Plan Commission are tasked with studying these potential effects, which will inform updates to the city's zoning ordinance and set future development expectations. Councilperson Elaine Murphy, who sponsored the ordinance, emphasized the need to understand both the economic and environmental consequences, advocating for citizen protection against potential negative impacts from large corporations.

The City's Planning Commission had previously given a "favorable recommendation" for the moratorium on June 23. During public comment, residents voiced concerns about health impacts in surrounding areas and increasing energy prices. Resident David McOwen, who worked at a Chicago data center, highlighted New Albany's opportunity to set a precedent for responsible development that prioritizes residents over corporations.