Memphis weighs data center moratorium in city Musk’s xAI calls ‘home’
The Memphis City Council has advanced an ordinance to enact a moratorium on new data centers, prompted by sponsor JB Smiley Jr.'s concern over xAI's unannounced fourth data center. The proposed pause would allow officials to develop new zoning requirements for future data center projects.
The Memphis City Council has taken a preliminary step towards implementing a moratorium on new data center developments within the city. During a meeting on Tuesday, the council passed an ordinance that, if fully enacted, would temporarily halt the approval of new facilities, though it would not affect existing xAI data centers or those already under construction by the company.
Councilman JB Smiley Jr. sponsored the measure, citing a lack of transparency from xAI regarding its expansion plans. Smiley indicated he became aware of xAI's fourth data center project through social media, where Elon Musk had announced the facility two weeks prior. He expressed frustration that both the city council and residents were uninformed about the development on land xAI already owns.
Smiley emphasized the need for greater respect from developers operating in the community. The proposed moratorium aims to provide city officials with time to consider and establish new zoning requirements for data centers, ensuring more structured oversight of future projects.