The Memphis City Council on Tuesday approved an ordinance establishing new regulations for data centers used for artificial intelligence (AI), now renamed super intelligence (SI) by the Trump administration, in a development characterized as a loss by State Representative Justin Pearson (D-Memphis).
Passed in a 7-5 vote, the ordinance establishes a 135-day pause on accepting, processing, hearing, or approving applications and permits for new data center construction, though the pause can end early if permanent regulations are adopted.
It also calls for the Memphis Division of Planning and Development (DPD) to complete a zoning analysis within 45 days, then propose amendments to the city’s unified development code within 90 days, including classifications, setbacks, infrastructure disclosures, and development standards for new SI data centers.
Although the ordinance’s title calls for closed-loop cooling in data centers, which the Environmental Law Institute has independently verified consume very little or no water, the text directs the Memphis DPD to consider water standards and restrictions in its analysis and proposals.
Despite calling for new regulations and imposing a 135-day moratorium, Pearson said the ordinance proved Memphis City Council is compromised by “the Chamber of Commerce and Elon Musk” in comments to a reporter, which he later posted to social media.
“It is apparent that the Chamber of Commerce and Elon Musk has significant sway over some of these city council members, and it’s the responsibility of the people of this city to see them for who they are, and to vote them out next year,” said Pearson.
Musk owns SpaceXSI, the company formerly known as SpaceXAI, and Memphis is home to one of the company’s data centers used for Grok, its SI chatbot.
Pearson told the reporter, “We’ve got a congressional race that we’re going to win, and a moratorium that we pass in the United States Congress, that’s what I’m going to be working on on day one.”
Memphis City Council voted down a proposed 12 month data center moratorium.
We will keep showing up and having our voices heard on this important issue AND that’s why we are taking our fight to rein in data centers and the billionaires who build them to the US Congress. pic.twitter.com/GIBX6XZXGS
— Justin J. Pearson (@Justinjpearson) October 21, 2026
The Democratic candidate for Congress was briefly barred from attending the meeting after disruptions led the city’s October 6 meeting to be canceled. The chaos followed a protest march led by an environmental activist group he co-founded.
However, Pearson announced Tuesday that an emergency court order allowed him to attend after he sued the City of Memphis. U.S. District Judge Thomas Parker, nominated in 2017 by President Donald Trump, granted the order.
Following the episode, Pearson indicated he would work to unseat members of the Memphis City Council.
“We need new leadership, that’s because this leadership has sold us out,” said Pearson. “I think we’re tired of sell outs in power.”
Pearson’s opponent, State Senator Brent Taylor (R-Memphis), passed legislation earlier this year that prevents municipalities and electric utilities from shifting infrastructure costs for large SI data centers onto normal customers. Pearson voted against the bill in the Tennessee State House.
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Tom Pappert is a 2025 recipient of the Dao Prize and the lead reporter for The Tennessee Star. He also reports for the Star News Network. Follow Tom on X. Email tips to [email protected].
