Memphis City Council Faces Tension Over Data Center Development

In a tense city council meeting in Memphis, Tennessee, leaders voted against implementing a year-long moratorium on data center development. The proposal was initially intended to halt development activities driven by Elon Musk’s SpaceXAI in the city. Instead, council members passed an ordinance to suspend construction for 135 days, a decision characterized by short notice for review according to some.

For several years, residents and activists have voiced opposition to data center developments. Activism began with SpaceXAI’s Colossus 1 data center built in 2024. The company has constructed two more data centers and is building two additional centers in the Memphis area, including Southaven, Mississippi. Southaven hosts a power plant using methane gas turbines, leading to a lawsuit by the NAACP and other groups over pollution concerns.

SpaceXAI did not respond to a request for comment, the article notes. Although the Trump administration sought to dismiss the pollution lawsuit, a Mississippi federal judge blocked this move.

Supporters of the data centers argue they are essential for the growth of AI technology and job creation. However, experts highlight that most jobs are temporary in construction. The moratorium aimed to allow time for crafting permanent zoning regulations and studying the impacts of data centers on air quality, electrical infrastructure, water protection, and noise levels. Existing operations would have continued unaffected.

The substitute ordinance aligns with Memphis Mayor Paul Young’s executive order for a 90-day impact study on data center development. Many meeting attendees showed confusion and disbelief at the sudden proposal for the new ordinance. Some remained to express their frustrations vocally after the vote.

A previous postponement of this vote led to protests and an early end to the city council meeting on October 6. Opposition to data center developments isn’t unique to Memphis. A recent Pew Research Center survey indicates that over half of Americans are uncomfortable with nearby data center operations, echoing sentiments seen in city council meetings nationwide.

KeShaun Pearson, Memphis Community Against Pollution’s executive director, expressed concerns about transparency and environmental impact. Pearson stated, It’s as if those elected to protect and represent us have abdicated their responsibility. Pearson and others, including his brother, Tennessee Rep. Justin Pearson, faced bans from city council meetings following city hall protests. A federal judge later lifted the ban, allowing their presence at the vote. The pair has sued the city council over these restrictions.

Photo Caption: Construction on a SpaceXAI data center on Riverport Road in Memphis, Tennessee, on April 25, 2025. Photo by Brandon Dill/The Washington Post via Getty Images.