Memphis City Council has delayed a vote on a proposed 12-month data center moratorium for a second time, despite protests from more than 100 residents. The pause, proposed by councilor JB Smiley Jr., would allow officials to assess data centers’ social, health, and environmental impacts. Councilors voted 7-5 to postpone the decision, with a vote now expected on October 20.
Fox News Memphis reported that protesters chanted slogans as police cleared the council chamber. A fight also reportedly broke out outside the council offices, but no arrests were made. It was the second delay in deciding on the proposed moratorium. Similar restrictions are being considered across the US amid growing opposition to AI and data center development, including at the state level. Memphis has a relatively small data center market but hosts several facilities operated by Elon Musk’s xAI, now rebranded as SpaceXAI.
xAI’s Memphis data centers power Grok and provide cloud services to clients including Anthropic. The sites face lawsuits over alleged gas turbine permit violations. Some councilors warn a moratorium could divert investment elsewhere. An xAI facility in neighboring Mississippi would remain unaffected.
Speaking to WREG, councilor Jeff Warren said: "If we pass a moratorium, there’s no reason for them to think they need to come here. They get the same benefit from going to DeSoto County, Crittenden County, Fayette County, Tipton County."
