Shelby County assessor makes the case for data centers amid tax base concerns
Shelby County Assessor Javier Bailey is urging Memphis-area leaders to regulate rather than halt data center development, arguing that facilities can generate substantial property tax revenue. The Shelby County Commission is exploring a moratorium, while Memphis is studying data center impacts and considering new zoning standards and a 12-month pause.
Shelby County Assessor of Property Javier Bailey Sr. is advocating for regulated data center growth as Memphis and Shelby County confront a stagnant commercial tax base, population loss and major future spending obligations. Bailey cited the Colossus supercomputer facility in Southwest Memphis, owned by SpaceXAI, as an example of the potential revenue, claiming it generated $16 million for Shelby County and $12 million for Memphis in its first year, though the figures have not been independently verified.
Bailey’s position conflicts with advocates who want a pause on new facilities because of concerns about air pollution, water consumption and electricity demand. The Shelby County Commission is exploring a moratorium, Memphis Mayor Paul Young authorized a study of data center impacts, and the Memphis City Council approved data center zoning standards on first reading while considering a proposed 12-month moratorium.
Bailey said Nvidia, Dell and Supermicro were announced as potential participants in SpaceXAI’s Memphis expansion, although Dell later said it had no plans for new local sites. He plans to convene a November tax-base summit with city and county officials, business leaders and homeowners to discuss data centers, tax revenue and the reuse of vacant Downtown office buildings.