Less than a day after the Memphis City Council voted to place a 135‑day moratorium on new data center construction, the Shelby County Commission convened Wednesday to consider its own set of regulations for the booming industry.
Ordinances on the table
Commissioner Amber Huett‑Garcia introduced a bill that would require existing data centers to adopt water‑conservation measures and limit electricity consumption. The proposal also outlines reporting requirements and compliance standards for facilities already operating within the county.
In a separate measure, Commissioners Henri Brooks and Erika Sugarmon sponsored a temporary moratorium that would last no longer than 12 months. The intent, according to Brooks, is to give the county time to develop a comprehensive regulatory framework that balances economic growth with community protection.
Commissioners weigh safety and opportunity
“I understand the City of Memphis is also moving something – they’re moving toward this. My intention is that we do that in lock‑step since we have a joint planning committee,” Huett‑Garcia said, emphasizing the need for coordinated policy between city and county.
Commissioner Will Richardson highlighted the importance of protecting residents while still capitalizing on the jobs and tax revenue data centers bring. “At the end of the day, we all lay our heads down in Shelby County,” he said. “I just want to make sure that everybody’s safe, but we also move forward in this opportunity.”
Erika Sugarmon raised concerns about the high cost of electricity and the noise generated by data centers, noting that current zoning ordinances do not address these issues. “I’m hearing about the consumption of the electricity, the cost of electricity, things of that nature as well as noise pollution, which is not covered in our zoning ordinances,” she explained.
Utility rate hikes and mayoral outlook
On the same day, the Memphis Light, Gas and Water (MLGW) board approved phased‑in rate increases of 12 % for water and 11 % for gas over the next three years. MLGW CEO and President Doug McGowen said the hikes were planned before data center activity began in the area, noting, “We forecasted these rate increases in 2023. I’ll say it out loud. This is before we even knew that xAI was a thing.”
Mayor Paul Young addressed the media, confirming that the city council can extend the 135‑day moratorium if needed. He also referenced his executive order, which gives city staff 90 days to draft a comprehensive data‑center regulatory plan. “So that if a data center wants to locate in our community, the proper protections are in place so the community can feel that their voices have been heard and that the government is taking all the necessary steps to protect them,” Young said.
Industry response
Elon Musk, whose SpaceXAI data‑center operations are based in Memphis, told an earnings call that he spends four days a week in the city managing the facilities. Business Insider reported that Musk is offering a 20 % pay premium to workers who relocate to Memphis, underscoring the industry’s commitment to local job creation.
The county’s deliberations come at a time when both local officials and industry leaders stress the need for balanced regulation—protecting residents from excessive utility use and noise while fostering the economic benefits that data centers promise.
Original reporting: Action News 5 WMC (Gray) — read the source article.
