Memphis City Council One Step Closer To Passing Data Center Moratorium

The Memphis City Council recently introduced an ordinance proposing a 12-month moratorium on new data center development and the implementation of new zoning regulations within the city. The ordinance, spearheaded by Council Chairwoman Jana Swearengen-Washington and Councilmembers Yolanda Cooper-Sutton, JB Smiley, and Jerri Green, aims to pause development while the council reassesses zoning laws and conducts studies on utility and land usage.

While existing data centers, including two large SpaceXAI campuses, would be exempt, the proposal would halt the processing and approval of new data center applications. Environmental advocacy groups such as Protect Our Aquifer, Memphis Community Against Pollution, and Young, Gifted, and Green have voiced strong support, citing concerns over water resources and the need for stricter regulation, noting that eight other Tennessee communities have already enacted similar moratoriums.

However, the Greater Memphis Chamber and the Memphis Area Minority Contractors Association (MAMCA) have expressed opposition, urging the council to vote against the moratorium. Chamber President Bobby White warned that a year-long pause could cost the city economic leverage and deter businesses, emphasizing Memphis's unique position with ample power infrastructure, water capacity, and logistical footprint. Both organizations advocate for a stakeholder study committee and thoughtful planning over an immediate moratorium.

The proposed ordinance requires two more readings by the full City Council to officially pass, with votes expected in the coming weeks. Public sentiment remains divided between environmental protection and economic development concerns.