Memphis councilors rejected an 18-month data center moratorium, opting instead for a 135-day pause on new applications and a 90-day review of digital infrastructure projects. The longer proposa
l followed public opposition and protests at an October 6 council meeting.
After a five-and-a-half-hour debate, Memphis councilors split 6–6 on an 18-month data center ban, then approved a 135-day pause pending Mayor Paul Young’s review. Hundreds attended the meeting, including six people reinstated by a judge after being barred from a previous session. Memphis has a limited data center market, though several facilities operated by Elon Musk’s SpaceXAI are located there.
xAI’s Memphis data centers face lawsuits over alleged gas turbine permit violations. Some councilors warned that a moratorium could drive investment elsewhere. Data center bans are spreading across the US amid growing opposition to AI infrastructure.
