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Memphis city council members rejected a yearlong pause on data center development Tuesday, approving a 135-day construction halt instead during a heated meeting that left some attendees visibly shocked and confused.
Some council members said they received the substitute ordinance on short notice and lacked time to review it. The approved measure says it is intended to complement Memphis Mayor Paul Young's executive order establishing a 90-day period to study data center development's impacts.
The rejected proposal would have given the city a year to adopt permanent zoning and development rules, establish disclosure requirements for applicants, and study effects on air quality, electrical infrastructure, water protection and noise. It would not have stopped existing data center operations.
After the vote, a few people stayed in the council chambers, singing, chanting and expressing frustration. The decision followed a postponement earlier this month that triggered protests and brought an Oct. 6 council meeting to an early close.
Before the vote, KeShaun Pearson, executive director of the Memphis Community Against Pollution, said residents were concerned about data centers' environmental effects and what they viewed as a lack of transparency from local officials.
"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.
Pearson and his brother, Tennessee Rep. Justin Pearson, were among a handful of people barred from council meetings after the protests at city hall earlier this month. A federal judge lifted the ban, allowing both to attend Tuesday's vote. Pearson and the group have sued the city council over the ban.
Residents and activists have challenged data center development in the Memphis region for years, beginning with the construction of Elon Musk's SpaceXAI's Colossus 1 facility in 2024. The company has built two other data centers and has two under construction in Memphis and the surrounding region, including in Southaven, Mississippi.
A Southaven plant supplying power to the company's data centers uses methane gas turbines. The NAACP and other organizations sued over alleged pollution. The Trump administration sought to dismiss the case, but a Mississippi federal judge blocked that effort earlier Tuesday.
SpaceXAI did not respond to a request for comment.
Supporters say data centers are needed to sustain the growth of artificial intelligence technology and will provide much-needed jobs. Experts counter that many of those jobs are temporary construction positions.
The dispute in Memphis reflects opposition seen elsewhere in the country. A recent Pew Research Center survey found that over half of Americans say they are not comfortable with a new data center operating in their area, a sentiment also surfacing at city council meetings and town halls nationwide.
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