Memphis City Council Rejects 18-Month Data Center Moratorium, Approves Substitute Rules
The Memphis City Council rejected an 18-month moratorium on approvals for new data centers in a tied vote, then approved a substitute ordinance that reportedly includes a 135-day pause on permits and other development rules. The report also covers a lawsuit alleging that SpaceXAI operated gas turbines in Southaven, Mississippi, before receiving an air-quality permit; the case was allowed to proceed.
The Memphis City Council voted 6-6 against an 18-month moratorium on new data center approvals, falling short of the seven votes needed for passage. The proposal, introduced after weeks of debate and amended by Council Member Easter Thomas, would have paused applications while the city considered zoning and development standards, public input, and how data center-generated revenue could benefit residents.
Council members subsequently approved a substitute ordinance combining two earlier data center measures. Initial reports indicate the substitute includes a 135-day pause on data center permits, although ABC24 said it was still seeking the full text to determine the precise restrictions and implementation details.
The update also reported that the U.S. District Court for the Northern District of Mississippi allowed a lawsuit against SpaceXAI to continue. The NAACP alleges the company violated the Clean Air Act by operating gas turbines in Southaven before obtaining a permit; the Department of Justice had asked the court to dismiss the case, arguing the expansion was necessary, but the court declined to do so.