Memphis City Council One Step Closer To Passing Data Center Moratorium

Memphis City Council One Step Closer To Passing Data Center Moratorium

Memphis City Council One Step Closer To Passing Data Center Moratorium

Image Credit: memphistn.gov & Canva

Tennessee Conservative News [By Olivia Lupia] –

During a standing-room only meeting on Tuesday, the Memphis City Council introduced an ordinance that would enact a 12-month moratorium on new data center development in the city and implement new zoning regulations, though Memphians seem to be divided on the issue with many environmental advocates supporting the measure while other pro-business organizations have expressed hesitancy.

The ordinance, proposed by Council Chairwoman Jana Swearengen-Washington, Councilmembers Yolanda Cooper-Sutton, JB Smiley, and Jerri Green, who is also the Democrat nominee for Governor, calls for a one-year pause on new data centers while the council reassesses city zoning laws and performs several studies on utility and land usage.

Under the proposal, the City of Memphis can continue to accept applications but “Shall not process, schedule, hear, approve, or issue any approval” for new data centers or other “high-density computing facilities”.

Memphis is currently home to 12 data centers, including two large SpaceXAI campuses, to which the ordinance would not apply should it pass. But Councilman Smiley says the studies that would be conducted during the moratorium year could provide more transparency surrounding the operation of the centers.

“What the ordinance is requiring is a yearlong moratorium, and it also requires a study group to come together to figure out what are the best practices,” Smiley said. “We need more information. We need communities to be heard. We need elected officials to be respected. They have to come to the Council and give us notice when they’re operating in such a way.”

Several organizations offered their support, including Protect Our Aquifer, whose Executive Director Sara Houston said, “Memphis has an extraordinary water resource. We need answers. But extraordinary resources require extraordinary stewardship.”

President of Memphis Community Against Pollution Keshaun Pearson also offered his endorsement of the proposal, saying of the initial approval by the council committee, “People of Memphis deserve this. They deserve to be protected are cared for in this way. We are way behind on regulating data centers. This was a positive first step.”

And LaTricea Adams, founder of Young, Gifted, and Green, asked, “Eight other Tennessee communities have done the same thing [implementing a moratorium]. Why is it that Memphis hasn’t done the same?

But not all stakeholders are onboard with the moratorium. Ahead of the council’s first vote on Tuesday, the Greater Memphis Chamber issued a statement asking the council for a “no” vote, saying that the moratorium could cost the city “leverage” in attracting businesses, development, or other “economic momentum.”

“The Greater Memphis Chamber believes Memphis is uniquely positioned to lead the nation in responsibly hosting the data center industry, and we are committed to leveraging that position for lasting community benefit,” the statement said. “Across the country, communities are closing their doors to data centers, often because they lack the power infrastructure, water, capacity, or logistical footprint to support them. Memphis has all three.”

Chamber President Bobby White further commented, “Quite frankly, a year-long, people will make business decisions, people will go other places. Memphis would not be building on the momentum it already has at this point. If we had to do it all over again, I believe that there should have been more to be said about how elected officials themselves should get the great information, the good information, the accurate information, not the misinformation and be able to share that out widely.”

He also clarified that opposing the moratorium does not equal opposing regulation. “So when we say ‘no moratorium’… by no means is that a statement, ‘Hey, just let them do whatever.’ No, this is just saying, ‘Don’t impose a moratorium. Go through a process where you can have questions answered. And then, if there are considerations to be made about things to do differently, you know, move forward in that direction,’” White said.

The Memphis Area Minority Contractors Association (MAMCA) is also calling for the Council to consider a stakeholder study committee before it moves forward with a moratorium, writing in part, “We support thoughtful planning and believe that major development projects should benefit our entire community. At the same time, we believe that a moratorium should not be imposed before stakeholders have had an opportunity to fully evaluate both the challenges and opportunities associated with the data center industry.”

To officially pass, the proposal must be approved through two more readings by the full City Council which will likely occur over the next few weeks.

Sources:

https://wreg.com/news/local/data-center-moratorium-moves-to-full-council-for-discussion

https://www.fox13memphis.com/news/first-reading-of-data-center-moratorium-passes-through-city-council/article_49ee8b39-c0cf-4ab8-b5d9-e9ef62fa327a.html

https://www.actionnews5.com/2026/08/18/memphis-city-council-committee-advances-data-center-moratorium-proposal

https://www.commercialappeal.com/story/money/business/development/2026/08/18/memphis-chamber-opposes-data-center-moratorium-says-city-will-lose-leverage-in-statement/91362036007/?gnt-cfr=1&gca-cat=p&gca-uir=true&gca-epti=z113918p004850l004450c004850e009400v113918d–34–b–34–&gca-ft=176&gca-ds=sophi

About the Author: Olivia Lupia is a political refugee from Colorado who now calls Tennessee home. A proud follower of Christ, she views all political happenings through a Biblical lens and aims to utilize her knowledge and experience to educate and equip others. Olivia is an outspoken conservative who has run for local office, managed campaigns, and been highly involved with state & local GOPs, state legislatures, and other grassroots organizations and movements. Olivia can be reached at olivia@tennesseeconservativenews.com.

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