MLGW approves rate hikes for water and gas, including new water class for data centers
The Memphis, Light, Gas and Water board approved three years of water-rate increases, including a new rate class for data centers. Data centers would face annual increases of 30%, but the Memphis City Council must give final approval before the changes could take effect in January 2027.
The Memphis, Light, Gas and Water Board of Commissioners unanimously approved proposed water-rate increases beginning in 2027, including the creation of a separate customer class for data centers. Rates would rise 12% annually for residential customers, 20% for commercial and industrial users, and 30% for data centers over three years.
The board also proposed three consecutive annual gas-rate increases. MLGW leaders said the additional revenue would not be used to fund data-center infrastructure. The Memphis City Council is expected to review and vote on the rate changes after budget sessions and committee consideration, with the timing of the final vote not yet clear.