Memphis City Council approves data center ordinance; moratorium falls short
The Memphis City Council rejected an 18-month moratorium on new data center construction but approved an ordinance imposing a 135-day pause on new applications and requiring regulations for water cooling and renewable energy use. The decision followed strong resident opposition and concerns about the environmental and infrastructure impacts of xAI’s Southwest Memphis facility.
The Memphis City Council approved a substitute data center ordinance on third and final reading, replacing a proposed 18-month moratorium with a 135-day pause on new data center applications. The measure, introduced by Council members Jeff Warren and Rhonda Logan, also calls for closed-loop water cooling systems and increased use of renewable energy, while aligning with Mayor Paul Young’s 90-day study of data center impacts.
The longer moratorium failed on a 6-6 vote despite support from residents and several council members, who sought additional community engagement. Opposition has intensified around xAI’s Southwest Memphis facility, which reportedly uses gas turbines and draws an estimated 800,000 to 1.3 million gallons of water daily from the Memphis Sand Aquifer. Nearby residents have raised concerns about air quality, noise and traffic, while a Shelby County Health Department report ranked the facility among the county’s largest industrial polluters.