Skip to content
Friday, October 23, 2026 · Today’s edition, 6:30 a.m. ETFri, Oct 23 · 6:30 a.m. editionSign inMy Desk 0EditionsSign in

Memphis City Council rejects 18-month data center moratorium, sets 135-day pause

The 18-month ban failed on a 6-6 vote with one member absent; the 135-day pause is tied to Mayor Paul Young's 90-day review.

At a glance

  1. The longer ban failed on a 6-6 vote, with one member absent, after a five-and-a-half-hour debate.
  2. The 135-day pause is timed to a 90-day review of digital infrastructure's local impact that Mayor Paul Young commissioned at the start of October.
  3. Memphis is not a big data center market, but it hosts several xAI facilities, which DCD says have been rebranded as SpaceXAI.

Memphis City Council rejected an 18-month moratorium on new data centers and voted instead for a 135-day pause on new applications, Data Center Dynamics reported. The longer ban failed on a 6-6 vote, with one member absent, after a five-and-a-half-hour debate.

The 135-day pause is timed to a 90-day review of digital infrastructure's local impact that Mayor Paul Young commissioned at the start of October. DCD reported that the measure is intended to "develop clear, actionable recommendations for regulating large and hyperscale data centers in Memphis."

Memphis is not a big data center market, but it hosts several xAI facilities, which DCD says have been rebranded as SpaceXAI. Built over the past two years to power the Grok chatbot and sell cloud capacity to clients including Anthropic, the sites have drawn lawsuits from environmental and civil rights campaigners who claim the company violated its permits on gas turbine use.

Opponents of the longer ban said data center developers could move their tax revenue to other jurisdictions; one of Musk's data centers already sits across the state line in Mississippi. DCD reported that such pauses have become commonplace across US communities as opposition to AI infrastructure grows.

Council cut the proposed data center ban from 18 months to 135 days

Length of each measure, in days

540 days18-month moratorium (rejected)135 daysPause on new applications (adopted)90 daysMayor's impact review540 days18-month moratorium (rejected)135 days90 daysMayor's impact review540 days18-month moratorium (rejected)135 days90 daysMayor's impact review
Source: Data Center Dynamics report · Memphis City Council vote
Show as table
LabelValue (days)
18-month moratorium (rejected)540 days
Pause on new applications (adopted)135 days
Mayor's impact review90 days

Reported by the Data centers & fiber desk from Data Center Dynamics and Action News 5. Published . Corrections

Related

Infrastructure

SpaceX's $41.1bn compute book rests on four counterparties

The new $13.3bn contract takes annual compute leasing to $41.1bn — and the equity is now a wager on four names.

Infrastructure

SpaceX seeks access to 80,000 US cell sites in Crown Castle talks

Crown Castle's CEO says the tower owner is talking to "all parties" on a master lease, without naming SpaceX.

Infrastructure

Anthropic in talks for second 460MW lease at Nscale's West Virginia campus

The reported $45 billion contract would double Anthropic's committed capacity at Monarch to 920MW; Microsoft already holds 1.35GW there.

Infrastructure

European Commission accuses KKR of misleading €22bn TIM NetCo merger review

The Statement of Objections alleges KKR misstated whether FiberCop's wholesale access terms were locked in place; KKR says it stands by the information it gave.

Infrastructure

TerraWatt proposes up to 1GW Illinois data center on steel site

Alton Steel's 381-acre mill site would be built in 200 MW blocks, with a 2027 closing contingent on rezoning and an Ameren Illinois study.

Private Infrastructure Dailyfrom Private Wealth Daily

Energy transition, digital infrastructure and core-plus funds. Weekdays at 7:25 a.m. ET.

Free. Weekday mornings. Unsubscribe from any edition in one click.

From other sections