Memphis mayor holds press conference; addresses data centers day before vote on development pause

News Clip2:53ABC24 Memphis·Memphis, Shelby County, TN·10/5/2026

Memphis Mayor Paul Young called for new rules governing data centers as the Memphis City Council prepared to vote on a temporary pause in new data center permits. Young cited concerns about power use, air quality, water and zoning, while also emphasizing the tax revenue and investment generated by xAI's projects.

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Gov: Memphis City Council, City of Memphis, Shelby County Commission, Memphis Light, Gas and Water Division, Tennessee Valley Authority, Shelby County Health Department

Memphis Mayor Paul Young urged the city to establish safeguards for data center development as the Memphis City Council prepared for a final vote on a proposed moratorium. The ordinance would temporarily pause permit approvals for new data centers and other large computing facilities while the city studies their long-term effects and develops regulations.

Young said the rules should address electricity consumption, air quality, noise and the locations of hyperscale facilities. He called for Memphis Light, Gas and Water, the Tennessee Valley Authority, the Shelby County Health Department, the City Council and the Shelby County Commission to participate in developing those protections.

The mayor also highlighted the economic benefits of data center investment, saying xAI generated about $54 million in combined city and county tax revenue during the year. He said protecting Memphis' aquifer was an early priority and that he had asked xAI to help develop a graywater recycling facility.