Jeffersonville passes year-long data center moratorium amid resident outcry and major utility disclosures
The Jeffersonville City Council unanimously passed a year-long moratorium on new data center developments to allow time for new zoning regulations to be drafted. This action came amidst significant resident outcry regarding noise, heat, and water precedence issues from the existing Meta data center, which is unaffected by the new moratorium. The city plans to create a "Special Data Center Overlay District" with strict mandates for future developments.
The Jeffersonville City Council has enacted a year-long moratorium on new data center development, following an 8-0 vote. The ordinance, which was swiftly pushed through three readings in a single session, aims to prevent developers from submitting applications before the city can draft comprehensive regulations. Councilmember Jackie Snelling successfully advocated for the extended one-year pause, pushing the expiration to mid-2027 to ensure the planning commission has sufficient time to craft permanent zoning rules.
However, city leaders confirmed that the new moratorium will not impact the Meta data center currently under construction at the River Ridge Commerce Center. This is due to federal and state military reuse statutes granting the River Ridge Development Authority ultimate zoning authority over that land. Furthermore, property taxes from the Meta project, located within a Tax Increment Financing (TIF) district, will remain within the commerce center for industrial infrastructure, rather than benefiting local schools or general city funds.
The council's decision was largely driven by fierce opposition from residents, who packed the chambers to voice concerns. Neighbors residing near the Meta site testified about severe noise pollution from decibel generator testing and raised issues regarding heat impacting local HVAC systems. Local utility customers also expressed outrage over contracts that reportedly prioritize Meta's water supply during natural disasters. Many residents stated they felt "bamboozled" by confidential 2022 negotiations that bypassed public hearings, yielding only 100 promised permanent jobs while heavily burdening local infrastructure.
In response to these concerns and to protect residential areas, Councilmember Dustin White proposed a new zoning strategy. This plan would remove data centers as permitted uses in standard industrial zones and restrict future developments to a newly created "Special Data Center Overlay District." This district would impose strict mandates, including physical berms and significant buffers from residential properties. The city will utilize the moratorium period to finalize these new regulations.