Caddo Parish to consider temporary freeze on tax breaks for data centers

Caddo Parish Commissioner John-Paul Young is set to introduce a legislative measure proposing a two-year moratorium on future tax incentive agreements for data centers in Caddo Parish, Louisiana. This move aims to allow the parish to assess the long-term impacts of data center developments before committing to further financial abatements like payments in lieu of taxes. The proposed moratorium, which does not affect data center campuses currently under construction, is driven by concerns regarding environmental effects, increased ambient heat, significant water consumption, and potential impacts on utility rates.

The initiative follows a December vote by the Caddo Parish Commission to approve tax incentives that facilitated the construction of an Amazon Web Services campus. Commissioner Young, along with others, has expressed misgivings about this prior decision, citing a lack of information at the time. Previous legislative attempts, including a resolution for an environmental study and an ordinance to regulate temporary workforce housing for the Stateline Road Data Center, were not adopted by the commission.

The new resolution calls for the establishment of a committee to study local concerns and risks associated with data centers. This committee would have 18 months to produce a report, which the commission would then be required to consider for a vote within 60 days of its issuance. A commission work session is scheduled for August 17, with a regular meeting to follow on August 20, where this measure is expected to be discussed.