Tennessee

Data center activity in Tennessee

Loading...
Regulatory Environment Score
C
-2 pts

Tennessee's environment is shaped by heavy moratorium activity, with at least 122 enacted and only one reported rejection, meaning pause efforts almost always succeed. Zoning outcomes are favorable when they occur, with at least 11 approvals and two denials, but opposition has been effective, blocking at least 11 projects while only three advanced despite objections. At least 77 companies are active. Tennessee is more restrictive than neighboring Alabama and North Carolina, where projects more often overcome local resistance.

How is this scored?
Memphis City Council Rejects 12-Month Data Center Moratorium, Approves Shorter Regulatory Pause
News Clip5:06Fox News·Memphis, Shelby County, TN

Memphis City Council Rejects 12-Month Data Center Moratorium, Approves Shorter Regulatory Pause

The Memphis City Council rejected a proposed 12-month moratorium on data center development but approved a shorter pause to develop local regulations. Councilman Jeff Warren said the city plans to use zoning rules to address pollution, water supply, and siting concerns, while residents called for stronger restrictions.

10/23/2026
Planning Board denies data center application
News ClipThe Tomahawk·Mountain City, Johnson County, TN

Planning Board denies data center application

The Mountain City Planning Board denied an application for a proposed modular AI factory and data center at 1455 S. Shady St. The town still has an ordinance allowing data center applications, while Johnson County lacks regulations specifically governing such developments.

10/23/2026
Town Council denies application for M-2 zoning for modular data center at 1455 S. Shady St.
News ClipThe Tomahawk·Mountain City, Johnson County, TN

Town Council denies application for M-2 zoning for modular data center at 1455 S. Shady St.

The Mountain City Town Council denied an application for M-2 zoning for a proposed modular AI factory and data center at 1455 S. Shady St. The project was proposed by James Phipps and Blue Sky AI, while an existing ordinance continues to allow data center applications in the town and Johnson County has no specific regulations for such developments.

10/23/2026
Memphis City Council approves data center ordinance; moratorium falls short
News ClipTri-State Defender·Memphis, Shelby County, TN

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.

10/22/2026
Shelby Co Commission debates data center rules day after Memphis City Council passes moratorium
News ClipAction News 5·Memphis, Shelby County, TN

Shelby Co Commission debates data center rules day after Memphis City Council passes moratorium

The Shelby County Commission is considering data center regulations focused on water, electricity, noise and existing facilities, as well as a temporary moratorium of up to 12 months. The action follows Memphis’ approval of a 135-day data center moratorium, while Mayor Paul Young said the city may extend its pause as officials develop new protections.

10/22/2026
Community members say passed moratorium disregards what the community asked for
News ClipAction News 5·Memphis, Shelby County, TN

Community members say passed moratorium disregards what the community asked for

The Memphis City Council narrowly approved new data center regulations that include a 135-day moratorium, replacing a proposed 18-month pause. Community organizers criticized the ordinance for omitting a requirement for community input, while Mayor Paul Young said his separate 90-day study and executive order will include three community meetings.

10/22/2026
Trump suggests data centers pay for their own elec­tricity, pay dividends to local com­mu­nities
News ClipSpectrum News·Memphis, Shelby County, TN

Trump suggests data centers pay for their own elec­tricity, pay dividends to local com­mu­nities

President Donald Trump proposed requiring new data centers to generate their own electricity and pay dividends to local communities. The Memphis City Council rejected a proposed temporary moratorium on data centers amid concerns about electricity costs, water consumption and the broader impacts of artificial intelligence infrastructure.

10/21/2026
Memphis City Council Rejects 18-Month Data Center Moratorium, Approves Substitute Rules
News Clip3:30ABC24 Memphis·Memphis, Shelby County, TN

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.

10/21/2026
Memphis REJECTS pause on data center development
News Clip3:08Fox News Clips·Memphis, Shelby County, TN

Memphis REJECTS pause on data center development

The Memphis City Council rejected a proposed 18-month pause on new data center construction despite intense opposition from residents concerned about air quality, clean water and energy use. The council separately approved an ordinance establishing cleaner water and energy rules for data centers, amid controversy over Elon Musk’s xAI facility in the area.

10/21/2026