The New Orleans City Council voted to halt new data center projects citywide while the City Planning Commission (CPC) reviews how these facilities should be regulated, including a proposed project in New Orleans East. Several council members concurred that data centers can impose environmental and public health burdens and are often located in Black and Brown communities as the CPC will hold public hearings as it develops recommendations.
In a New Orleans City Council press release, two motions were approved, directing the CPC to study zoning changes and consider creating a temporary Interim Zoning District (IZD).
Under Motion M-26-62, the CPC will draft amendments to the Comprehensive Zoning Ordinance to formally define data centers, determine where they may be allowed or require special approval, and set standards addressing density, noise, safety, and other impacts on nearby neighbourhoods, businesses, and institutions.
Council President, JP Morrell, said, “The Interim Zoning District turns a page on that narrative by placing a hold on any future development while the City Planning Commission studies the potential impacts of an AI data center in New Orleans East.”
District E Councilmember, Jason Hughes, said, “District E deserves development that adds value without undermining the quality of life residents have fought to protect.”
Motion M-26-63 instructs the CPC to examine a citywide interim zoning district to prevent new data center development during the review period. The council is responding to concerns about a proposed AI-related data center in New Orleans East and broader questions about the environmental and infrastructure impacts of such facilities.
The pause would stop the issuance of occupational licenses and approvals for data centers for up to one year, with a possible extension under the City Charter, while the city evaluates land-use rules.