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Committee advances bill to explicitly allow data centers in industrial areas and broaden cooperative agreements
Summary
Senate Bill 79 would add data centers to Louisiana’s statutory definition of industrial purpose and allow industries in industrial areas to enter cooperative endeavor agreements with other municipalities, political subdivisions or private entities; the House Commerce Committee reported the bill favorably on May 19, 2025.
Senate Bill 79, presented to the House Committee on Commerce on May 19, 2025, would modernize the statutory definition of “industrial purpose” to explicitly include the construction and operation of data centers and expand which entities may enter cooperative endeavor agreements for services and facilities.
The change is intended to give local governments and industries more flexibility to secure services necessary to support modern industrial projects. Senator Bass told the committee the bill is “a department bill for LED” and that it “seeks to modernize the definition of industrial purpose and explicitly include, the construction and operation of the data centers.”
Why it matters: supporters said the amendment would help Louisiana compete for large technology investments. Susan Bourgeois, identified in the hearing as the head of Louisiana Economic Development, joined the presenter at the table and supported the bill. Senator Bass said the measure also “permits industries located within industrial areas to enter into such agreements, not only with the parish or municipality in which they are situated, but also with other municipalities, political subdivisions, or private entities.”
The bill requires cooperative endeavor agreements (CEAs) to include provisions that safeguard existing obligations of the parish, municipality, or political subdivision to current residents. It also requires that all industrial areas provide public road access to all plant entrances used by employees, contractors, or for delivery of materials and supplies; the proposal explicitly excludes access by rail or water transportation from that public-road requirement. Senator Bass described the expanded CEA partners as permissive: “It’s a may, not a shall,” giving localities and industries “more tools in our toolbox.”
Representative Saint Blanc moved to report the bill favorably; with no objection, the committee reported Senate Bill 79 favorable.
Discussion versus action: the committee’s vote to report the bill favorable was the formal action. Committee members asked clarifying questions about whether municipalities could contract for services such as fire protection if they could not provide them directly; Bass and Bourgeois replied the measure would allow such arrangements but would not require them. Concerns about local obligations were explicitly addressed by the bill’s language requiring CEAs to safeguard existing obligations.
The bill was presented as a tool to facilitate the siting of modern industrial facilities such as data centers across Louisiana while preserving resident protections and basic access requirements.
The committee did not take up additional amendments during the hearing.
