Memphis City Council may soon pause any future data centers from being built in Bluff City
Memphis City Council is considering a 12-month moratorium on new data center development to re-evaluate zoning laws and address concerns about water and power consumption. The proposed ordinance passed through committee and is now on its way to the council floor for a vote, with local groups expressing both support and opposition. The moratorium aims to ensure responsible development, but business groups argue against it, citing Memphis's existing infrastructure.
The Memphis City Council is debating a proposed 12-month moratorium on new data center construction within the city. The ordinance, which aims to pause new development to allow for a study committee to re-evaluate current zoning laws, passed through committee and is now scheduled for a full council vote.
The initiative follows the arrival of xAI two years ago, which brought significant investment but also controversy regarding its demands on water, power, and land. Environmental activists and some city council members, including one who stated, "I'm not anti-business, but I am pro-resident," are supporting the pause to ensure responsible development.
However, the Greater Memphis Chamber has urged the City Council to vote against the moratorium, emphasizing Memphis's robust power infrastructure, water capacity, and logistical footprint suitable for data centers. Similarly, the Memphis Area Minority Contractors Association called for a comprehensive study before enacting any ordinance, advocating for thorough evaluation of both challenges and opportunities.
The ordinance specifies that while applications can be accepted during the 12-month pause, no processing, scheduling, hearings, approvals, or issuances for special use permits or rezoning applications for data centers will occur. The measure requires three readings and approvals to pass.