Memphis Council Eyes Data Center Rules, Pauses Moratorium

Memphis City Council has chosen to develop regulations for data center development rather than enacting a temporary moratorium. Two resolutions, introduced by council members Philip Spinosa and Jeff Warren, aim to create specific parameters for data centers, especially hyperscale facilities.

During a recent committee meeting, an air quality study on SpaceXAI's Colossus data center was presented. The University of Memphis study indicated minimal impact on local air quality and surface heat since its September 2024 operation began, though it noted limitations in its satellite-based methodology. Concerns were raised regarding newer, closer facilities and ongoing expansions in the Memphis and Southaven, Mississippi areas.

Under the proposed guidelines, data centers demanding 20 megawatts or more will undergo rigorous reviews covering site plans, electrical and computing capacity, and cooling systems. All new facilities must use closed-loop cooling and are prohibited from using groundwater. Additionally, a renewable energy target of 60% within three years of operation is mandated, with fossil fuel generators restricted to backup use.

The council also discussed zoning definitions for data centers. While a proposed 12-month moratorium on new development was removed from the Sept. 15 agenda, it is slated for review on Oct. 6. Community members expressed urgency for stricter regulations to address rapid data center growth.