The City of Memphis is moving toward implementing a temporary moratorium on new data center development.
On Tuesday, the Memphis City Council passed an ordinance on first reading that would be in effect for 12 months.
City Council Members JB Smiley, Jr. (Super District 8, Position 1), Jerri Green (District 2), and Chairwoman Jana Swearengen-Washington (District 4) introduced the ordinance.
The ordinance proposal now goes on to second reading, where the city council will vote on it again sometime in September.
If the ordinance becomes law, Memphis will begin drafting zoning regulations for data centers.
The moratorium could be extended if more time is needed to develop zoning regulations.
City council members, along with the city’s planning department, will develop recommendations on zoning regulations for permitted locations, design, noise levels, water, electricity, and environmental sustainability.
Data centers and high-density computing facilities would be allowed to submit applications to Memphis, but only for the “limited purpose of docketing and completeness review.”
Memphis will not be advancing applications beyond that point under the moratorium. This means the city’s planning department would not process rezoning applications, building permits, special use permits, and site plan approvals.
For data centers that are lawfully existing in the city, the moratorium would not apply to them as long as they “do not expand their building footprint, electrical demand, utility capacity, or operational intensity.”
At the meeting, Swearengen-Washington said she wanted to see “smart growth” occur in Memphis. She noted she was not “anti-business,” but rather “pro-resident.”
Swearengen-Washington raised skepticism about the promised jobs from data centers, saying many are “highly automated.”
She said the city needs to ensure that city residents get “real pathways to employment.”
Furthermore, the councilwoman said the city owes residents a “full review of noise, environmental impact, and infrastructure strain before [the city]” approves the next data center.
Swearengen-Washington said the moratorium “is not a ban,” but “a pause,” which gives Memphis time to gather data, receive community input, and establish standards and rules.
“We welcome technology and investment, but it must be on Memphis terms with Memphis values and for Memphis families,” she noted.
Another co-sponsor, Smiley, said Memphis does not have regulations in place for large data centers.
He noted the temporary moratorium gives the city time to answer questions about who will pay for utility infrastructure, how residential customers will be affected, what environmental safeguards will be implemented, and what types of investments companies will make in neighborhoods where a data center is located.
Smiley said these types of questions “are the minimum questions responsible governments should answer before additional projects are approved.”
The Greater Memphis Chamber, an economic development organization, came out against the proposed moratorium ban, saying it believes “Memphis is uniquely positioned to lead the nation in responsibly hosting the data center industry.”
The chamber said Memphis has access to power infrastructure, water capacity, and a logistical footprint to support data centers.
“The better path is not to close the door. It is to stay at the table and negotiate harder. The chamber is committed to working with our regulatory partners and industry to ensure that every data center investment in Memphis delivers sustainable, long-term value to our entire community,” the chamber noted.
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Zachery Schmidt is the digital editor of The Star News Network. Email tips to Zachery at [email protected].
