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Memphis Rejects a Longer Data Center Moratorium, Approves a 135-Day Pause Instead

ArgusStaff by ArgusStaff
October 22, 2026
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After weeks of delays and a chaotic earlier meeting, the Memphis City Council made its decision on data centers Tuesday night, October 20, and the outcome was a compromise.

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What happened

The council voted down the longer moratorium on a 6-6 tie, with Councilwoman Yolanda Cooper-Sutton absent. Different outlets described that proposal as a pause of 12 to 18 months. Council members then passed a substitute plan, sponsored by Councilman Jeff Warren and Councilwoman Rhonda Logan, that creates a 135-day pause on new data center permitting. It passed 7-5.

What the shorter pause does

During the roughly four-and-a-half-month window, the city will develop land-use standards and regulations for siting, development, construction, expansion, and operation of data centers. Supporters said the plan protects the city from being exploited while keeping Memphis open for business, and that members consulted experts to make sure it will work.

A long night

The meeting lasted nearly six hours, including about three hours of public comment. The chamber was standing room only and reached capacity, so dozens of people protested outside. Security was increased after the October 6 meeting, which ended with police clearing the chamber.

Reactions

Environmental groups that wanted a longer freeze were disappointed. One activist who is also running for Congress said the council failed Memphians and criticized the shorter plan as rushed. Those who favored the compromise argued that a pause tied to concrete rules is more workable than an open-ended freeze, and one council member had argued earlier that a longer moratorium could hurt business.

What it means for developers and residents

Developers now face a temporary permitting restriction, but not the longer halt that some wanted. Residents concerned about water, power, noise, and air quality will be watching what rules the council writes in the coming months.

What’s next

The Shelby County Commission is also considering its own moratorium for unincorporated areas. Check council and commission agendas for the next steps.

Update note: this post follows up on earlier coverage ahead of the vote.

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