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Memphis City Council rejects 18-month data center moratorium, sets 135-day pause

The 18-month ban failed on a 6-6 vote with one member absent; the 135-day pause is tied to Mayor Paul Young's 90-day review.

At a glance

  1. The longer ban failed on a 6-6 vote, with one member absent, after a five-and-a-half-hour debate.
  2. The 135-day pause is timed to a 90-day review of digital infrastructure's local impact that Mayor Paul Young commissioned at the start of October.
  3. Memphis is not a big data center market, but it hosts several xAI facilities, which DCD says have been rebranded as SpaceXAI.

Memphis City Council rejected an 18-month moratorium on new data centers and voted instead for a 135-day pause on new applications, Data Center Dynamics reported. The longer ban failed on a 6-6 vote, with one member absent, after a five-and-a-half-hour debate.

The 135-day pause is timed to a 90-day review of digital infrastructure's local impact that Mayor Paul Young commissioned at the start of October. DCD reported that the measure is intended to "develop clear, actionable recommendations for regulating large and hyperscale data centers in Memphis."

Memphis is not a big data center market, but it hosts several xAI facilities, which DCD says have been rebranded as SpaceXAI. Built over the past two years to power the Grok chatbot and sell cloud capacity to clients including Anthropic, the sites have drawn lawsuits from environmental and civil rights campaigners who claim the company violated its permits on gas turbine use.

Opponents of the longer ban said data center developers could move their tax revenue to other jurisdictions; one of Musk's data centers already sits across the state line in Mississippi. DCD reported that such pauses have become commonplace across US communities as opposition to AI infrastructure grows.

Council cut the proposed data center ban from 18 months to 135 days

Length of each measure, in days

540 days18-month moratorium (rejected)135 daysPause on new applications (adopted)90 daysMayor's impact review540 days18-month moratorium (rejected)135 days90 daysMayor's impact review540 days18-month moratorium (rejected)135 days90 daysMayor's impact review
Source: Data Center Dynamics report · Memphis City Council vote
Show as table
LabelValue (days)
18-month moratorium (rejected)540 days
Pause on new applications (adopted)135 days
Mayor's impact review90 days

Reported by the Data centers & fiber desk from Data Center Dynamics and Action News 5. Published . Corrections

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