PRESSING PAUSE ON DATA CENTERS: Mayor Gahan Asks New Albany Council for Moratorium on New Data Center Development

PRESSING PAUSE ON DATA CENTERS: Mayor Gahan Asks New Albany Council for Moratorium on New Data Center Development

This week, Mayor Gahan is urging the New Albany Common Council to establish a moratorium on the construction of new data centers within the City and its two-mile fringe planning jurisdiction.

If approved, the moratorium would remain in effect for one year while City officials complete a comprehensive review of how data center development could impact local infrastructure, land use planning, utility costs, environmental effects, and the long-term goals outlined in New Albany's recently adopted Comprehensive Plan.

The proposed ordinance would provide City leaders, planning professionals, and the public with the opportunity to evaluate appropriate standards and regulations before this emerging form of development occurs locally.

"New Albany has a limited amount of land, and this pause allows us to thoroughly examine the impacts of data centers,” said Mayor Jeff Gahan.

City Councilperson Elaine Murphy has agreed to sponsor the ordinance that has been drafted, and had the following comments: “Before a data center can be built in our city, we would first need to know the economic and environmental impacts. Big corporations are benefiting from tax exemptions for their data centers and they are profiting hand over fist. We need to be watchful and make sure there are no negative consequences for the citizens of New Albany.”

During the moratorium period, the City's Department of Planning and Zoning and Plan Commission would be asked to study the potential effects of data centers on public infrastructure, municipal services, economic development, utility costs, environmental effects, and neighborhood character. The findings would help inform updates to the City's zoning ordinance and establish clear expectations for any future proposals.

Data centers have become increasingly common in Indiana as demand for cloud computing, digital services, and artificial intelligence technologies continues to grow. The “Big Beautiful Bill” has also allocated many dollars and resources to expand data centers throughout rural and urban areas in Indiana. These facilities can require significant infrastructure investments, including enhanced electrical capacity, backup power systems, cooling equipment, and other specialized support systems.

City officials emphasized that the proposed moratorium is intended to ensure New Albany is proactive rather than reactive when considering these types of projects.

"By studying this issue now, we can keep our residents informed about the potential benefits and pitfalls of the Great Data Center Expansion in and around our River City,” stated Mayor Gahan. “I would hope all elected county officials and state representatives would take the same action and stand up for Hoosier residents, especially those who live in Southern Indiana.”

The ordinance will be considered by the New Albany Common Council at an upcoming public meeting.

Finding the Right Balance - New Albany Works to Increase Home Ownership

🏠 FINDING THE RIGHT BALANCE - New Albany Works to Increase Home Ownership

At tonight’s Plan Commission meeting, the board will hear proposals for building 80 new homes. Combined with the 230 homes already under construction throughout the city, this makes more than 310 new homes being developed in New Albany right now for single-family ownership.

“We believe homeownership is one of the strongest tools for building stable neighborhoods and stronger communities. When families are able to own a home, they are more likely to invest in their neighborhood, support local schools and businesses, and build long-term roots in the community. Our goal is to create more opportunities for residents to achieve that stability while continuing to improve housing options across New Albany,” stated Mayor Jeff Gahan.

The most recent housing study identified a growing shortage of single-family homes available across communities both in New Albany and nationwide. In response, New Albany has worked proactively to encourage new housing construction and create pathways to homeownership for working families, and the city is committed to finding more ways to keep up that progress.

Currently, approximately 45.5% of households in New Albany are renter-occupied, compared to a 54.5% homeownership rate. In the year 2000, home ownership rates in New Albany were nearly 60%, and city officials have emphasized the importance of creating more opportunities for long-term homeownership and neighborhood stability so that we can achieve those numbers again.

Comparison to Other Indiana Communities

New Albany’s homeownership rate of 54.5% is low compared to other cities, particularly its local peers (see attached chart for more details). The gap between the city’s homeownership rate and its share of single-family housing (70.3%) indicates that many single-family homes are rented.

To help address this imbalance, the City enacted an apartment moratorium a little over a year ago that paused construction on large big-box style apartments that have crept up all over the region. Additionally, the city has pursued policies encouraging single-family home construction while also implementing programs that support first-time homebuyers and existing homeowners, including:

• Down-payment assistance programs

• Emergency home repair assistance

• Neighborhood investment initiatives

City of New Albany Expanding Parks Options

At today’s New Albany Redevelopment Commission, the board voted in favor of moving two major developments ahead.

First is the addition of expanded trails along the western portion of the New Albany Shoreline. The site sits on the former QRS Recycling Center, and the site has been undergoing cleanup and preparation for future greenspace. This addition would add numerous trails along the Riverfront, as well as a new Mountain Bike Trail.

The board also voted to move forward the conversion of turf fields at Silver Street Park (SSP). SSP is one of the premier parks in the area, hosting numerous leagues, team practices, and events. Currently, the site hosts multiple grass fields, but this limits the amount of days that events, games, and practices can be hosted outdoors at the facility.

The addition of turf fields will greatly expand the number of days for outdoor programming (as much as 190 additional days per year!), as well as significantly reduced maintenance costs and time. 

“These improvements in health and wellness reflect our dedication to New Albany residents,” stated Mayor Jeff Gahan. “Improvements like these lay the groundwork for a more vibrant, healthy community, through expanded leagues and programming and more opportunities to improve your health and relax along the Shoreline.”

New Albany Advances New Animal Shelter and Public Works Projects

The City of New Albany took another major step forward today as the New Albany Redevelopment Commission approved moving ahead with two key investments in city services: a new animal shelter and a new public works facility.

Both projects were originally approved by the New Albany City Council in 2025 as part of Mayor Jeff Gahan’s key initiatives, and today’s action signals that the City is getting closer to breaking ground on these critical investments in public services.

“These projects represent a long-term commitment to improving the services our residents rely on every day,” said Mayor Jeff Gahan. “From caring for animals to maintaining our streets and responding to emergencies, these facilities will ensure our team has the space, tools, and technology they need to serve our community at the highest level.”

The new animal shelter project follows the City’s decision to end a previous joint arrangement with Floyd County. Under the former interlocal agreement, the City and County were expected to share costs nearly evenly based on population. However, over time, Floyd County officials fell significantly behind on their financial obligations, shorting the City by nearly $1 million. The shortage from county officials has had drastic consequences on the condition of the facility, with the aging building rapidly deteriorating beyond what it can effectively support.

In response, City leadership moved to establish a fully independent animal shelter to ensure reliable funding and improved services. The new facility will significantly expand capacity, incorporate modern design, and include specialized HVAC systems to help prevent the spread of disease and improve overall animal health. The result will be a safer, more efficient, and more humane environment for animals and staff alike.

The City’s current public works facility is over 50 years old and has long exceeded its useful life and is no longer adequate to meet the City’s growing needs.

The new public works building will modernize operations by expanding space for equipment, materials, and workforce training. These upgrades will strengthen the City’s ability to respond to emergencies and severe weather events, while also improving day-to-day services such as road maintenance, pothole repair, and infrastructure improvements.

Together, these projects reflect New Albany’s continued investment in strong neighborhoods, public safety, and high-quality city services.

New Albany Takes First Step Toward New Animal Shelter 🐾

The City of New Albany is taking an important first step toward building a new animal shelter to better serve our community and its animals.

On Tuesday, April 21, site plans for the new facility will be presented to the Plan Commission for review and approval, marking the first official step in the development process.

Currently, the City operates out of the New Albany–Floyd County Animal Shelter building. As demand for services continues to grow, the need for a modern, expanded facility has become increasingly clear. In 2024 alone, the shelter cared for more than 1,000 animals, stretching the capacity of the existing space.

This project follows the City’s transition to independently operating animal services after the dissolution of the joint city-county agreement in 2023. That agreement, originally established in 1999, ended after Floyd County officials had fallen more than $1 million behind in their share of operating costs over time. Following the split, the City assumed full responsibility for shelter operations.

At the same time, Floyd County Commissioners in recent public meetings have proposed the current animal shelter site be part of a future judicial center project to replace the dilapidated former City-County Building. This further reinforces the need for the City to move forward with a new, dedicated facility.

The new animal shelter will allow New Albany to expand and improve services, including:

• Animal care and housing

• Adoption services

• Veterinary/health services

• Training and community programs

“New Albany has a tradition of providing high-quality care and services to our furry friends, and this new Animal Shelter will continue and build on that tradition for years to come,” said Mayor Jeff Gahan.

The City remains committed to ensuring the long-term success of its animal services program and meeting the growing needs of the community.