VIDALIA, La. — After more than a dozen residents spoke out regarding a proposed data center operation at the former Vidalia Fruit of the Loom site, the Vidalia Board of Aldermen still moved forward with granting an occupational license for the project.
In addition, the board voted 4-0 on an option agreement that would allow the company the first right to purchase approximately 208 acres of the surrounding industrial property from the town during a special meeting on Tuesday.
Alderman Robert Gardner was the only official absent during Tuesday’s meeting, stating that he was not given a long enough notice about the meeting to arrange his work schedule.
Those present all voted in favor.
The former Fruit of the Loom site, or more recently the former Vidalia Mills denim manufacturing plant, has been owned by creditors to the former Vidalia Mills denim manufacturing company since the business folded under financial strain.
The closing deadline on the sale is Oct. 5, prompting Tuesday’s special-called meeting with short notice.
Vidalia Mayor Buz Craft said the investment group that looks to buy the plant, Fortalis Vidalia LLC, is part of a sister company that is doing “huge” things for the State of Louisiana and not just Vidalia.
Craft said to expect an announcement to come out of Baton Rouge in the coming weeks.
“The company is registered out of Oklahoma and is authorized to do business in Louisiana,” Craft said. “I can’t say too much about their sister company, but there will be a huge announcement next week with their sister company in the State of Louisiana and it’s going to be transformational for the state and for us as well.”
While a data center was not the only option proposed for the site, Craft said it is the strongest contender. Of over 12 residents who spoke out, few openly stated they support the project, including House Rep. C. Travis Johnson of Ferriday.
When it comes to emerging new industries such as AI data centers, “It is incumbent upon us to be strongly educated,” Johnson said, adding Craft is “deeply intelligent” on the topic.
“He’s one of our best small-town mayors in Louisiana,” Johnson said of Craft. “As a representative of 14 municipalities, I know when I am sitting amongst a great mayor who understands the subject matter and is making clear agreements.”
Of data centers specifically, Johnson said, “It can be done properly. ... We’ve got to make strong decisions while protecting our water and our environment. I wholeheartedly support this.”
Of the rest who either spoke out, most expressed fears of loud noise, overuse of Vidalia water and electricity and loss of potential jobs that other industries might've brought.
“I love this city, but I don’t love AI,” one resident said, asking the board whether it was in writing that the project will produce long-term jobs in Vidalia after construction is over.
“At its peak, Fruit of the Loom had 500 employees and the majority were Vidalia residents inside the city limits,” said Sabrina Doré. “As we’re comparing the noise levels, the pollution levels and all of those things to Fruit of the Loom and what that was like when it was here back in the 90s, we also have to look at 50 jobs versus 250 jobs. ... All of the construction jobs are not jobs given to local residents. They’re being pumped in there. Is it a boon for the economy during the building phase? Absolutely. But what happens when the builders leave?”
Instead of going back and forth, Mayor Buz Craft decided to address all of the voiced concerns in one full swoop.
No local incentives were offered
“This company has not asked for any NDA’s or tax breaks,” Craft said. “They haven’t asked for any deals on power or any kind of reduced rate. They haven’t asked us for any money whatsoever.”
Craft said any planned buildouts are 100 percent funded through the industry without any local money from the town.
While it is not in writing, Craft said the initial phase of the project is expected to bring 65 to 70 permanent jobs that would pay $75,000 to $80,000 per year, with another 100 to 150 jobs expected to follow behind.
No strain on the power grid
“We have the power,” Craft said. “We have a substation that we just built in 2019,” to prepare for Syrah Resources’ ramp-up.
“We have 104 megawatts available, and right now we’re only using 22. We have that power available to sell to this company."
Initially, the industry expects a usage of 50 megawatts of the town's power, expected to produce $4.2 million of additional revenue for the town of Vidalia just in utilities, Craft said.
After that, the data center would step up its usage to 150 megawatts, which Craft said would bring an additional $9 million in revenue to the town that could be used to offset utility rates and to make the power even cheaper.
“Your bill (rate-wise) is not going to go up,” because of this, he said.
The town has traditionally paid back utility customers a rebate worth up to 50 percent of their utility costs . Craft said that would not be affected at all.
Separate from the town’s power supply, the data center proposal includes an enclosed natural gas-fired units that will only run if the town's transmission is down, creating a backup power supply for the industry.
Water usage
Craft said the most water that the company is asking for by contract is 50,000 gallons, but their daily usage will likely be between 15,000 to 20,000 gallons.
“That’s what our splashpad uses,” he said. “It’s not going to increase your costs. The only increase we’ve had (to water rates) since I’ve been in office was mandated by the state because we were too cheap. Or else we wouldn’t have gotten $10 million from the state to double our water plant.”
Since the water plant’s expansion, Craft said the town has the capacity to clear 2 million gallons per day, while the entire town currently uses anywhere between 600,000 and 700,000 gallons per day.
Noise emissions
Craft said the town's ordinances will not allow steady noise over 65 decibels, described as the level of normal human conversation or a dishwasher running. Data centers like the one proposed are expected to produce 40 to 60 decibels.
“I live, as the crow flies, roughly a mile away from the plant. I want not only what is best for the town but what is best for the citizens who live close to it,” Craft said.
“When this whole thing unravels, you’re going to be so happy to be a Vidalia citizen. Although I don’t think it’s going to be as transformational as the hydro plant, the people who want to purchase (the Fruit of the Loom property) say it can be, and I’m excited about it.”