Memphis City Council Rejects Year-Long Data Center Moratorium in Favor of 135-Day Pause

POLICY WIRE — Memphis, Tennessee — During a contentious session on Tuesday, Memphis city leaders rejected a proposed one-year moratorium on new data center developments. The city has recently emerged as a primary hub for these facilities, largely fueled by the expansion of Elon Musk’s SpaceXAI.

Instead of the year-long freeze, council members approved a substitute ordinance that limits the construction of new data centers to a 135-day window. Several council members expressed frustration regarding the measure, noting that the text was provided on short notice, leaving them insufficient time for a thorough review.

Public pushback against these facilities has been building since 2024, when SpaceXAI launched its Colossus 1 data center. The company currently operates three facilities in the region, with two additional sites under construction in Memphis and nearby Southaven, Mississippi.

Legal battles are also intensifying, particularly in Southaven, where a power plant utilizing methane gas turbines has triggered a lawsuit from the NAACP and other advocacy groups over pollution allegations. While the Trump administration sought to dismiss the litigation, a federal judge in Mississippi denied that request earlier on Tuesday.

Proponents of the data center expansion argue that the facilities are essential for the advancement of artificial intelligence and promise to generate local employment. Critics, however, contend that many of these roles are limited to the construction phase and do not provide long-term economic stability.

The rejected one-year moratorium would have allowed the city to implement permanent zoning regulations and establish disclosure requirements for developers. It also would have facilitated formal studies on the impact of these facilities on noise levels, water protection, electrical infrastructure, and air quality.

The newly passed 135-day ordinance is intended to align with an executive order from Memphis Mayor Paul Young, which mandates a 90-day study period regarding the impact of data center growth. The vote left many attendees in the chambers visibly confused, with some protesters remaining after the session to chant and voice their opposition.

This legislative action follows an Oct. 6 meeting that was cut short due to protests. The local resistance mirrors a national trend; a recent Pew Research Center survey indicates that more than half of Americans express discomfort with the presence of data centers in their communities.

KeShaun Pearson, executive director of Memphis Community Against Pollution, criticized the local government for a perceived lack of transparency and environmental oversight. He stated that it is as if the people who have been elected to protect us and to stand up to corporations and be that representative have just completely abdicated that responsibility, and left us to fend for ourselves.

Pearson and his brother, Tennessee Rep. Justin Pearson, were previously barred from city council meetings following earlier protests. A federal judge recently lifted that ban, allowing both men to attend Tuesday’s vote as they continue to pursue a lawsuit against the city council regarding the exclusion.

Reporting by Policy-Wire (PW)