Memphis approves 135-day data center pause after rejecting longer moratorium

Memphis council members approved a 135-day pause on new data center applications on October 20 after rejecting a longer moratorium. The longer proposal failed on a 6-6 vote, with one member absent.

The shorter pause accompanies a separate review ordered by Mayor Paul Young. On October 9, the city announced a 90-day study to develop recommendations for regulating large data centers. Its scope includes neighborhood impacts, infrastructure, air quality, water resources and protections for utility customers.

The decision follows sustained opposition to data center expansion in the Memphis area. Facilities developed by Elon Musk's AI business have drawn scrutiny over gas turbines used to supply electricity. Some council members have also raised concerns that restrictions could drive investment and tax revenue elsewhere.

The city's review will bring together specialists to recommend safeguards for future development. Those recommendations are intended to inform regulation while the council considers data center legislation.