CEO of MLGW hints at future data center development

Doug McGowan, President and CEO of Memphis Light, Gas and Water (MLGW), indicated that the utility is studying two new potential data center projects in Memphis, Tennessee. These projects would collectively require approximately 350 megawatts of power. One project is envisioned as a 50-megawatt expansion of an existing facility, identified as "5C," while the other, a 300-megawatt development, would be located in an industrial park.

McGowan clarified that neither project has secured a commitment for service and both would require multiple approvals, including from the Tennessee Valley Authority (TVA). He anticipates no significant progress on these until at least early 2027. He also assured council members that any necessary system upgrades to accommodate these data centers would be fully funded by the companies, ensuring no impact on other customers. Additionally, these large power consumers would participate in a power interruption program, curtailing usage when energy is scarce to prevent cost deferment onto other customers.

Separately, existing projects, "5C" and "xAI's Colossus project," have received approvals for additional megawatts (9 MW and 150 MW, respectively) and are expected to be completed by the end of the year. Furthermore, MLGW has received other speculative data center applications that have not yet been studied. The Memphis City Council is also considering a proposed 12-month moratorium on new data center development, which, if enacted, would pause new applications until permanent zoning regulations are developed.