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This week, the Memphis City Council approved a 135-day moratorium, or temporary pause, on new data center approvals. In this case, it means the City generally cannot accept new applications, approve new projects, or issue new data center permits during that period. The Council's action follows an executive order I signed earlier this month launching a 90-day study to develop stronger protections for our neighborhoods, our air and water, our utility customers, and our city's infrastructure.
The City Council ordinance does not shut down existing data centers. Facilities already operating can continue, and certain previously approved projects are exempt.
But together, these two actions give us a path to establish permanent rules for where data centers can be built, how they operate, and how we protect our residents and resources.
My executive order established a 90-day process to:
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Bring together experts to examine the impact of data centers on our neighborhoods, air, water, power supply, and infrastructure.
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Hear from residents through community education sessions, public comments, and a presentation of findings.
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Recommend specific protections to the City Council, MLGW, the Shelby County Health Department, and other agencies with the authority to implement them.
The Council's ordinance builds on that work by:
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Temporarily stopping new approvals for 135 days. The pause is intended to allow permanent regulations to be adopted.
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Reviewing existing zoning rules within 45 days. The Division of Planning and Development must review where data centers are currently allowed and recommend appropriate locations and restrictions.
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Requiring proposed new regulations within 90 days. The Division of Planning and Development must prepare proposed zoning and development rules addressing where data centers can locate and what standards they must meet.
What We Are Protecting:
Your neighborhood. We're examining where large hyperscale data centers should be allowed, how close they can be to homes and schools, and what rules are needed for noise, construction traffic, and buffers between facilities and neighborhoods.
The air you breathe. We'll work with the Shelby County Health Department and other agencies to develop recommendations for emissions standards, air monitoring, and enforcement.
Our drinking water. We're evaluating water demands, protections for our aquifer, and alternatives such as treated wastewater for cooling.
Your utility bills. We've already made progress here. In August, TVA approved a new rate structure requiring data centers to pay higher electricity rates and additional charges for the power capacity they need. I supported that decision because Memphis families and small businesses should not be subsidizing the cost of serving these massive facilities. We'll continue working with MLGW and TVA to ensure those protections are effective.
Our roads and infrastructure. We're reviewing how these developments affect roads, drainage, and sewer systems, and how new industries should contribute to necessary improvements.
We're also looking at different standards for different types of data centers. A smaller facility shouldn't necessarily face the same requirements as hyperscale data centers, which use significantly more resources.
We want Memphis families to benefit from economic growth without carrying an unfair share of the costs or risks.
What Happens Next:
Over the 90-day study period, we'll hold at least three community education sessions, accept written public comments, and publicly present our findings and recommendations.
At the same time, City staff will develop proposed zoning regulations under the Council's ordinance.
The City can establish zoning and development rules, but other non-city agencies have authority over issues such as air quality and utility rates. That's why our recommendations will go to the City Council, MLGW, the Shelby County Health Department, and other agencies responsible for implementing protections.
And we're already addressing concerns that don't need to wait for new regulations.
After meeting with residents and school leadership in Southwest Memphis, City engineers worked with company engineers to redirect heavy construction trucks away from Tulane and Holmes near John P. Freeman School.
We'll continue addressing immediate concerns while developing longer-term protections.
If a company wants to build and do business in Memphis, it should be a good neighbor, protect our resources, pay its fair share, and contribute to the future of our city.
Engagement Opportunity: Memphis City Council Planning & Zoning Committee Hearings on Data Center Legislation. (Public Hearing #3 and #4 of 5) Hearing 3 Focus: Community Engagement | Feedback | Q & A. Monday, October 26. Hearing 4 Focus: Community Benefits & Legislation | Economic Growth. Thursday, October 29. Both Meetings: 1 pm at City Hall - 5th Floor, City Council Committee Room.
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