Memphis leaders reject contentious 18-month pause on new data center development

2 hours ago  ·  3 min read
By Mark Moore - sandego.net
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Memphis Leaders Reject Contentious 18 Month Data Center Pause

Sandego.net – Memphis leaders reject contentious 18 month proposal to pause new data center development after the City Council divided evenly in a 6-6 vote. The measure, which would have temporarily halted new projects and expansions, failed Tuesday and leaves future proposals subject to the city’s existing approval process.

The plan originally proposed a 12-month moratorium before being amended earlier this month to last 18 months. During that period, a study committee would have examined possible local rules for data centers and their effects on communities.

Residents Raise Environmental and Neighborhood Concerns

Supporters of the pause said Memphis needed time to set safeguards before more large-scale facilities move forward. Their concerns included heavy electricity use, gas-powered turbine emissions, noise, vibrations, property values and the impact of industrial development on nearby neighborhoods.

“I think we failed the citizens of Memphis tonight and what they have been asking for, so it’s really disappointing,” Council Member Jerri Green said. “They’ve been pushing for this for over a year, they’re the people who are being deeply impacted by these environmental hazards.”

The Memphis leaders reject contentious 18 month vote followed weeks of intense debate at City Hall. More than 100 people attended an early October council meeting, where arguments broke out between opponents of data center growth, council members and other city officials. A separate confrontation in the lobby resulted in two women being restrained after exchanging punches.

Council Member JB Smiley Jr., who sponsored the measure, said the proposal was not intended to permanently block data centers. Instead, he argued that Memphis should slow development long enough to assess environmental and neighborhood protections.

“We’re not saying no to data centers forever; we’re saying slow it down so that we can make the necessary adjustments so that we can protect neighborhoods and property value,” Smiley said. “We have to make sure we’re putting people before profits.”

Colossus Project Intensifies the Memphis Debate

The Memphis leaders reject contentious 18 month decision comes amid continuing scrutiny of Colossus, an artificial intelligence data center created in a former southwest Memphis factory in June 2024. The Elon Musk-owned company now called SpaceXAI converted the site for the project and later promoted plans for a second nearby facility.

Residents of Boxtown, a historically majority-Black and economically disadvantaged southwest Memphis community, have been especially vocal. Dozens of gas-powered turbines used for the project became a focus of concern because the equipment can emit toxic pollutants.

Memphis already has more than a dozen polluting facilities and a long history of clean-air disputes. Residents near data centers have reported continuing noise and vibrations, while state officials have expressed concern about potentially dangerous turbine emissions. The dispute now centers on where advanced technology development should occur and how its costs and benefits are shared.

What Happens After the Council Vote?

Because Memphis leaders reject contentious 18 month moratorium, no temporary citywide halt will take effect. New data center proposals and expansions can continue through the existing review process unless the council approves new rules in the future.

Memphis Data Center FAQ

Did Memphis ban new data centers? No. The proposed temporary pause failed on a 6-6 City Council vote, so there is no new ban or moratorium.

How long would the proposed pause have lasted? The measure was revised from an initial 12-month proposal to an 18-month pause before it came to a final vote.

Why did residents support a pause? Supporters wanted more time to study electricity demand, turbine emissions, noise, environmental effects and potential impacts on nearby homes and property values.

Which Memphis area has raised concerns about Colossus? Residents of Boxtown in southwest Memphis have raised concerns about the nearby project, including pollution, noise and vibrations.

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