Proposed ordinance that could pause Memphis data center development moves forward
The Memphis City Council approved the first reading of an ordinance to temporarily pause new data center permit approvals. This pause would allow the city to study the long-term effects of data centers and establish clearer regulations. The city's Chamber of Commerce, however, advocates for negotiation rather than closing the door on development.
The Memphis City Council has passed the first reading of a proposed ordinance that would temporarily halt permit approvals for new data centers and other large computing facilities within the city. City leaders stated that this pause is intended to allow Memphis to study the long-term effects of data center development, establish clearer regulatory standards, and define the industry's role in the city's growth. Some council members emphasize the need to slow down on AI investments to determine if they truly benefit Memphis, advocating for development on the city's terms rather than allowing growth without safeguards.
The ordinance, which does not permanently prohibit data centers, requires two more council votes before becoming law. The Memphis Chamber of Commerce has expressed a differing view, stating that Memphis is well-positioned to lead the nation in hosting the data center industry. They urged negotiation and continued engagement rather than closing the door on development.