The Memphis City Council on Tuesday, Oct. 20, rejected a proposed 18-month pause on new data center development on a 6-6 tie. In the same session it passed a substitute ordinance meant to regulate how large data centers are sited, cooled and powered in the city. ABC24 reported that the substitute text was not immediately available for review when it published.
The two votes mean the pause did not pass, while a set of rules did. Exactly what those rules require is unclear until the enacted text is published, because the only version available to read is a September draft.
The Moratorium Vote
The moratorium appeared on the agenda as item 19. It failed 6 to 6, Action News 5 (WMC) reported. Council Member Yolanda Cooper-Sutton was not in attendance because of a family emergency, the station said.
According to ABC24's report, the ordinance was first introduced at the council's Sept. 1 meeting. As first written, the pause would have lasted 12 months. Council Member Michalyn Easter-Thomas amended it to 18 months. CNN reported that the amendment was made earlier in October. CNN also said the measure would have paused both new data centers and expansions of existing ones, and would have set up a study committee. Action News 5, by contrast, described the measure as a 12-month moratorium; ABC24 and CNN both put the final version at 18 months.
The vote came two weeks after an Oct. 6 council meeting that, CNN reported, led to protests, calls to police and a fist fight in the City Hall lobby. Action News 5 reported that the crowd on Oct. 20 was larger than the 407 people the council chambers could hold.
After the vote, Council Member Jerri Green told CNN: "I think we failed the citizens of Memphis tonight and what they have been asking for, so it's really disappointing."
CNN placed the debate in the context of SpaceXAI's Colossus data center in Memphis and the gas-powered turbines installed there, which CNN said angered residents.
The Substitute Ordinance
After the moratorium failed, the council passed a regulation ordinance. The sources describe it in slightly different ways.
- Action News 5 reported that the council passed the regulations item, item 18 on the agenda, which is Ordinance 5986, sponsored by Councilman Warren. The station's listing of the ordinance's title covers siting, development standards, closed-loop cooling, water conservation and monitoring, renewable and non-carbon electricity, and a schedule for phasing out carbon-based electricity.
- ABC24 reported that the council passed a substitute ordinance. It replaced Ordinance No. 5986 on the agenda and combined Ordinance No. 5986 with Ordinance No. 5988. ABC24 said the substitute was not immediately available for review and that it was working to get a copy.
Neither report described what Ordinance 5988 on its own would do, and DataCenterFeed has not read its text. Because the version that passed is a substitute, its provisions may differ from the earlier draft summarized below.
What the September Draft Said
The only text of Ordinance 5986 available to read is the September draft (v1) posted by the City of Memphis. It shows what the regulations were built around. It is not the enacted law.
Scope
The draft amends the Memphis and Shelby County Unified Development Code (Ordinance 5367). It defines a "Large Data Center" as one with a projected electrical demand of 20 megawatts or greater, or one designed or intended to increase demand to 20 megawatts or greater within 10 years of initial occupancy. The draft's requirements apply to every new data center, to expansions that increase electrical demand or cooling capacity, and to conversions of existing buildings, among other cases.
Water and Cooling
Under the draft, all new data centers must use closed-loop cooling systems. Routine evaporative cooling towers are prohibited, and no potable water may be used for intentional evaporative cooling.
Electricity Sourcing
The draft has two schedules that work together: one sets a minimum for renewable or non-carbon electricity matched to annual consumption, and the other caps carbon-based electricity. These figures come from the September draft:
| Period | Renewable / non-carbon matching (minimum) | Carbon-based electricity (maximum) |
|---|---|---|
| Start of operation (years 1–3) | 60% | 40% |
| Year 3 | 75% | — |
| Years 4–6 | — | 25% |
| Year 6 | 90% | — |
| Years 7–9 | — | 10% |
| Year 10 onward | 100% | 0% |
Carbon-based backup generators operated solely for emergency response, legally required testing, maintenance or grid emergency purposes are not treated as routine electricity sources under the draft. The draft also includes public disclosure and reporting requirements and civil penalties for violations.
Questions Still Open
Did the 20 MW threshold survive? No source has said. ABC24 reported that the substitute text was not immediately available, and Action News 5's listing of the ordinance's subjects did not give numeric thresholds.
Do the cooling and carbon rules match the draft? Action News 5's listing of the passed item covers closed-loop cooling, water conservation and monitoring, renewable and non-carbon electricity, and a carbon phase-out schedule. Those are the same subjects as the September draft. Neither outlet reported the percentages or deadlines in the version that passed.
What did adding Ordinance 5988 change? ABC24 reported that the substitute combined the two ordinances but did not say what 5988 added.
Is a study committee still planned? CNN said the study committee was part of the moratorium directive, and that directive failed. None of the sources says whether a similar committee appears in the substitute.
Why It Matters Beyond Memphis
Memphis considered both a pause and a set of rules on the same night. The pause failed on a 6-6 tie with one member absent, and the regulations item passed. If the enacted text keeps the draft's main features (required closed-loop cooling, a ban on routine evaporative cooling towers, and a 10-year schedule to zero carbon-based electricity), developers in Memphis would face specific requirements for water and power sourcing rather than a halt on applications.
What Happens Next
The sources do not name a next scheduled hearing or vote. ABC24 reported that the text of the substitute ordinance the council passed on Oct. 20 was not immediately available and that it was working to obtain a copy. Until the final text is published, the September v1 draft of Ordinance 5986 is the only version that can be read, and the enacted ordinance may differ from it.
Sources
- City of Memphis: Draft ordinance (Ordinance 5986, v1) establishing large-scale data center regulations
- CNN: Memphis leaders reject contentious 18-month pause on new data center development
- ABC24 (via Yahoo): City Council rejects ordinance pausing data center development for up to 18 months, passes substitute ordinance instead
- Action News 5 (WMC): Memphis City Council declines to pass data center moratorium
