ABC24 News Update | Ordinance to pause data centers due up for 2nd reading

The Memphis City Council is moving closer to enacting a temporary pause on new data center developments and high-density computing facilities within the city. The proposed ordinance is scheduled for its second reading on '901 Day' (September 1st), following an initial approval on August 18th.

If the ordinance is approved three times, it will go into law, temporarily halting permit approvals for new data centers, including building permits, rezoning applications, site plan approvals, and other land use approvals. It would not affect already operating data centers, like XAI, or applications that were legally vested before the ordinance's introduction, nor routine maintenance. The primary goal of this pause, which could last up to 12 months, is to give the city time to develop specific, permanent regulations for data centers. Council members noted that the current development code does not specifically classify or regulate data centers as their own land use type. The pause would also allow the city to study optimal locations for data centers and evaluate if developers should bear infrastructure costs. The moratorium could end earlier if the council adopts permanent data center regulations.