Memphis City Council Delays Final Vote on Data Center Moratorium

News Clip3:01ABC24 Memphis·Memphis, Shelby County, TN·10/7/2026

The Memphis City Council delayed for a second time its final vote on a proposed data center moratorium, postponing the matter until October 20. The delay triggered protests in the council gallery, while members requested more time to address zoning, economic impacts and community concerns. Councilwoman Yolanda Cooper Sutton also sought information about an alleged contract and nondisclosure agreements involving Elon Musk’s xAI.

moratoriumgovernmentzoningopposition
xAI
Gov: Memphis City Council, Shelby County Commission

The Memphis City Council postponed a final vote on an ordinance that would halt new data center development for up to 12 months, or until the city adopts permanent development rules. Members said they needed additional time to resolve zoning questions, assess potential economic benefits and hear from affected residents. A work session is planned before the council revisits the moratorium on Oct. 20.

The delayed vote prompted angry reactions from residents who supported the moratorium, with shouting in the gallery forcing the meeting to pause. Councilwoman Yolanda Cooper Sutton also demanded access to an alleged contract with Elon Musk’s xAI, saying officials may have signed nondisclosure agreements; the station said it had not independently verified those claims. Shelby County Commissioner Henry Brooks is separately expected to seek county support for a similar moratorium.