The Greater Memphis Chamber issued a statement ahead of Memphis City Council's vote Aug. 18 to approve a temporary moratorium on the first of three readings during its regular council meeting.
The resolution for a temporary moratorium on data centers in Memphis was moved to the council's consent agenda, following committee discussions earlier in the afternoon, passing smoothly with no discussion.
The chamber led by interim president and CEO Duncan Williams argues in the lengthy statement, outlining its rationale, that a moratorium could cost the city "leverage" in drawing corporate businesses, development and current economic momentum.
"The Greater Memphis
Chamber believes Memphis is uniquely positioned to lead the nation in responsibly hosting the data center industry, and we are committed to leveraging that position for lasting community benefit," the statement said.
"Across the country, communities are closing their doors to data centers, often because they lack the power infrastructure, water capacity, or logistical footprint to support them. Memphis has all three. That reality is not a vulnerability. It is leverage, and it is leverage the Chamber intends to use on behalf of this community."
Throughout the country, cities are reconsidering data centers from rewriting land use and development ordinances to enacting full moratoriums. Through an executive order signed by Gov. Kathy Hochul, New York recently became the first U.S. state to enact a statewide moratorium on hyperscale data center developments.
Close by, the Olive Branch Planning Commission voted down the development of a data center, with plans in place to allow the public to comment on future proposals.
The chamber statement also suggests before City Council makes a decision, experts in the field and regulatory agencies should be consulted and relevant data considered.
"A moratorium surrenders that leverage at precisely the moment when Memphis's competitive position has never been stronger," the statement says. "The concerns being raised deserve substantive answers, and those answers exist within the reputable regulatory agencies and partners whose expertise, data, and oversight are available to any Council member who requests them.
"Council members have direct access to those agencies, and the Chamber encourages them to engage those experts directly."
Since SpaceXAI has been operating in Memphis, the Greater Memphis Chamber has been an advocate for both the company and indirect investments from SpaceXAI's presence in Memphis.
Chamber: Don't 'close the door'
The chamber said it is willing to be a liason between regulatory agencies and the city.
"The better path is not to close the door. It is to stay at the table and negotiate harder," the statement said. "The Chamber is committed to working with our regulatory partners and industry to ensure that every data center investment in Memphis delivers sustainable, long-term value to our entire community, not just one-time capital dollars, but lasting infrastructure, workforce, and community benefits that outlast any single project.
"The Chamber urges the City Council to vote NO on the proposed moratorium and to keep Memphis open for business at a moment when our competitive advantage has never been greater."
Council members cast approval by consent agenda
The ordinance will need to go through three readings and approvals by City Council before it is final.
Some council members said they want more oversight and discussion before the city commits to data centers.
"No more stepping on us without talking to us," council member Jerri Green said during the afternoon committee session.
The Council's temporary ban is aimed at providing the city time to understand the infrastructure and environmental impacts of hyperscale data centers such as SpaceXAI's Colossus and Colossus 2.
"The moratorium gives us time to ask specific questions," Council member J.B. Smiley Jr. said during Aug. 18 afternoon committee meetings.
The initial approved ordinance is a temporary moratorium on acceptance, processing and approval of zoning and land use permits associated with data centers within the City of Memphis. Construction permits, including special use or planned development, are approved and processed via the Memphis and Shelby County Division of Planning and Development.
SpaceXAI has constructed two hyperscale data centers in Memphis with a third on the way, plus another in Southaven, Mississippi.
"We too were left in the dark," Green said Aug. 18 regarding the plans for a third Shelby County data center from SpaceXAI. "We too learned in the newspaper."
Kerri Bartlett contributed to this story.
Neil Strebig is a business journalist with The Commercial Appeal.
This article originally appeared on Memphis Commercial Appeal: Memphis chamber opposes data center moratorium, city to lose 'leverage'
