Memphis City Council members began preliminary discussions regarding local zoning plans for data centers on July 7, 2025. These discussions address concerns about unregulated power consumption and water usage from facilities like those operated by SpaceXAI.

There are no current zoning rules for data centers in Memphis. The plans are expected to be integrated into an update of the Memphis 3.0 comprehensive zoning plan. The Shelby County Commission will participate in any unified development code update.

SpaceXAI's Colossus One and Colossus Two data centers opened in Memphis in 2023. They use water from the Memphis Aquifer for cooling. The facilities are powered by 57 mobile natural-gas burning turbines operating without permits. SpaceXAI has indicated it will build a 1.2 gigawatt power plant.

Council member Cooper-Sutton emphasized the need for action. "We want to make sure there are some guardrails to make sure there are some protections," Cooper-Sutton said. She added, "We really need to be aggressive. This is nothing we need to be just sitting on."

City of Memphis COO Antonio Adams stated that not all data centers are problematic. "I don't want us to signal that data centers are bad," Adams said. He noted, "We've got powerful data centers, but they are at our hospitals and they save lives." Council member Jeff Warren noted the presence of the Memphis Aquifer as a factor for data center locations. "One of the reasons they are here is because they know we've got the aquifer," Warren said.

Why It Matters

The Memphis City Council's initiation of discussions on data center zoning responds to the current lack of regulations for these facilities. The unpermitted operation of power sources and reliance on the Memphis Aquifer for cooling by companies such as SpaceXAI indicate an absence of oversight. Integrating these zoning plans into the Memphis 3.0 comprehensive plan update represents an effort to establish regulatory frameworks for the industry in the city.