AAE’s recommendations for Data Center Guidelines in New Orleans

07.27.2026
Consumer Protection
New Orleans City Council
Bills & Economics
Reliability & Resilience
Dirty Energy

Last week, The Alliance provided a position paper, including considerations and guidelines, to the staff of the New Orleans City Planning Commission as they prepared to submit their recommendations on data centers to the Commission.

Furor arose in the community earlier this year when a re-zoning request appeared before the Commission for the development of a data center in New Orleans East. Though that project never materialized, residents were rightfully alarmed, as hyperscale data centers have harmed communities around the country by driving up energy costs, decreasing grid reliability, increasing air and noise pollution, and depleting water resources.

At that time, the City Council ordered a temporary, one-year prohibition on the zoning of new data centers and ordered the Commission to create definitions for data centers for the Comprehensive Zoning Ordinance. The Alliance met with Commission staff early on in the process to express our concerns, and drafted the position paper at their request. Their recommendations to the Commission were submitted on July 21 and include a citywide prohibition on large or hyperscale data centers, which they define as those larger than 100,000 square feet and consuming greater than 20 MW of electricity.

The Alliance created the following guidelines for regulation of data centers in New Orleans and Louisiana more broadly:

  1. No New Fossil Fuels
  2. Unique mandatory utility tariffs for large computational loads
  3. Utilities and developers pay their fair share of infrastructure costs and risks
  4. Customer Parent-company involvement in all regulatory proceedings
  5. Proper risk assessment throughout the lifecycle of a project
  6. Transparent regular reporting on power usage, emissions, and water
  7. Mandatory right to shut down during emergencies
  8. Public health impact mitigation

Additionally, we raised the following considerations specifically for the City Planning Commission:

  1. Regulatory or permitting guardrails for on-site diesel or gas generation
  2. Ordinances to mitigate noise pollution
  3. Proactive measures to combat microbial contamination of city water resources
  4. Strong enforcement mechanisms for non-compliance

The City Planning Commission is set to take up consideration of these recommendations at its next regular meeting on Tuesday, July 28 at 1:30pm in Council chambers. The Alliance encourages those who can to be there in person to voice your concerns to the Commission as it makes this important decision on the future of data centers in New Orleans.

View the Agenda

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