Memphis city councillors have rejected a proposed one-year moratorium on new data centre development, opting instead to impose a 135-day halt to construction after a heated meeting.
The Tennessee city has become a focus of opposition to facilities linked to Elon Musk’s SpaceXAI, including its Colossus 1 data centre, which began construction in 2024.
The alternative ordinance was passed despite some councillors saying they had received it at short notice and had not had enough time to examine it. Its wording says it is intended to complement an executive order by Memphis mayor Paul Young establishing a 90-day study of the effects of data centre development.
The rejected moratorium would have given Memphis a year to introduce permanent zoning and development rules, create disclosure requirements for applicants and assess the impact of data centres on air quality, electricity infrastructure, water protection and noise. Existing operations would not have been affected.
Residents and campaigners have opposed the expansion for several years. SpaceXAI has built two other data centres in Memphis and the surrounding area, with two more under construction, including facilities across the state line in Southaven, Mississippi.
A plant in Southaven that supplies power to the company’s data centres uses methane gas turbines. The NAACP and other organisations have brought a lawsuit alleging pollution. The Trump administration sought to have the case dismissed, but a Mississippi federal judge blocked that move earlier on Tuesday.
Supporters argue that data centres are necessary to support the growth of artificial intelligence and will provide much-needed employment. Critics say many of the jobs created are in construction and are temporary.
The council’s decision followed the postponement of an earlier vote, which led to protests inside the chambers and the early termination of an October 6 meeting. Several people remained after Tuesday’s vote, singing, chanting and expressing their anger.
KeShaun Pearson, executive director of Memphis Community Against Pollution, said residents were worried about what they regarded as a lack of transparency from local officials and the environmental consequences of the developments.
“It’s as if the people who have been elected to protect us and to stand up to corporations and be that representative have just completely abdicated that responsibility, and left us to fend for ourselves,” he said.
Mr Pearson and his brother, Tennessee representative Justin Pearson, had been barred from council meetings after the earlier protests. A federal judge lifted the ban, allowing both men to attend Tuesday’s vote, while they continue to sue the council over the restriction.
