Memphis chamber opposes data center moratorium, city to lose 'leverage'
The Memphis City Council passed a temporary moratorium on data centers on its first reading to allow time to study infrastructure and environmental impacts. The Greater Memphis Chamber vehemently opposes the moratorium, arguing it will cost the city economic leverage and that collaboration with experts is a better path. The ordinance requires two more readings and approvals to become final.
The Memphis City Council passed a temporary moratorium on data centers on its first reading during a regular council meeting, following earlier committee discussions. This resolution aims to pause the acceptance, processing, and approval of zoning and land use permits for data centers within the city, giving the council time to understand the infrastructure and environmental impacts, particularly concerning hyperscale facilities like those operated by SpaceXAI.
The Greater Memphis Chamber, led by interim president and CEO Duncan Williams, released a strong statement opposing the moratorium. The Chamber argues that Memphis is uniquely positioned with the necessary power infrastructure, water capacity, and logistical footprint to support the data center industry. They believe that enacting a moratorium would surrender the city's competitive leverage in attracting corporate businesses and development, costing Memphis economic momentum. The Chamber has been an advocate for SpaceXAI's presence in Memphis and its indirect investments.
Council members, including Jerri Green and J.B. Smiley Jr., expressed a desire for more oversight and discussion regarding data center developments, noting they felt 'left in the dark' about previous projects. The Chamber, however, urges the City Council to vote against the proposed moratorium, suggesting that direct engagement with regulatory agencies and industry experts would provide the substantive answers needed. The ordinance must go through two additional readings and approvals by the City Council before it is finalized.