Memphis Wants to Hit Pause on Musk’s Data Center Boom
Memphis City Council is considering a one-year moratorium on new data center developments by xAI after learning about a fourth project without prior notification. The proposed pause aims to allow the city to establish new regulations addressing environmental, noise, and infrastructure impacts, following previous controversies including a lawsuit over unpermitted gas turbines for xAI's first data center.
Memphis city leaders are considering a one-year moratorium on new data center construction following the surprise announcement of a fourth facility by Elon Musk's xAI (referred to as SpaceXAI).
Councilmembers JB Smiley, Jr., Jana Swearengen-Washington, and Jerri Green introduced the moratorium bill, which has already passed its first full reading unanimously. The initiative comes after xAI's first data center in South Memphis, built in a historically Black neighborhood, sparked controversy due to the installation of unpermitted gas turbines, leading to protests and a lawsuit.
City leaders expressed frustration over being kept in the dark about xAI's expansion plans and emphasized the need for a pause to develop comprehensive regulations addressing noise, environmental impact, and infrastructure strain. State Rep. Justin D. Pearson supports the moratorium, highlighting the substantial power and water demands of xAI's existing and proposed facilities, which could reach 2 gigawatts.
The local Chamber of Commerce, however, is urging the council to vote against the moratorium. The measure still requires two more council votes to become law, signaling ongoing debate over data center development in the city.