A moratorium on data centers in unincorporated areas of Shelby County advanced to a second reading on a slim plurality of votes during the Monday, Oct. 12 meeting.
The 12-month pause on new data center construction in Shelby County mirrors an ordinance under consideration by the Memphis City Council. However, the city’s effort has stalled in recent weeks as the council has opted to draw up a comprehensive ordinance to regulate the tech facilities. A similar regulatory framework will soon be under commission review too.
A carbon copy of the council’s wide-ranging ordinance will be offered Wednesday, Oct. 22, that would allow the commission to stay on the same page as the city.
“I am going to mirror what the City of Memphis passed Thursday, putting out those regulations — thinking about electricity demand, noise, closed loop systems, water consumption,” said Amber Huett-Garcia.
The first term commissioner teased the ordinance, following conversations with the county’s planning and development arm. Huett-Garcia also spent time studying the legal challenges posed by moratoriums. If passed, a temporary freeze would most likely trigger a lawsuit.
Prior to the homework, the commissioner intended on introducing amendments to the Henri Brooks’ moratorium proposal. But the answers that came back were “substantive enough that it would have changed the intent.”
For starters, the land available for data center development is “pretty limited,” Huett-Garcia said. More than 80% of the land in question is “protected agricultural conservation.” Plus, much of the remaining 20% or so lacks the infrastructure — such as transmission lines and water service — to support data centers.
Generalized anxieties over pollution were largely eased during a recent report from the Shelby County Health Department, where it was revealed that the xAI data center in South Memphis wasn’t among the county’s top polluting industries.
“We have to root it in reality. When we heard about data centers, they are not in our top 25 polluters. We heard that from our own health county department as testimony,” said Huett-Garcia. “So I am trying to balance this by sending the message that we are not closed for business, because that also harms taxpayers.”
The unseen ordinance would not halt the moratorium, but serve as an eventual replacement. The county will eventually have to come together with the City of Memphis anyway. Both governments work from the same Unified Development Code drawn up by a shared planning committee.
The approach could draw the support of the commission’s four Republican members. Many consider a moratorium a non-starter, a “closed for business” sign that would repel business opportunities. According to the group’s elder statesman, Mark Billingsley, a comprehensive ordinance could also receive backing from the county mayor.
“I had a conversation today with Mayor Lowery to get his feel on what was happening. He was very encouraged about the conversations that were happening across the street at the City of Memphis. His hope was he was going to work hand in hand with Mayor Paul Young and hope we would work across the street as well, because we have one Shelby County,” conveyed Billingsley.
Brooks, the architect of the commission’s moratorium effort, didn’t object to the council’s work. A full-scale approach is needed. Yet, with the current regulatory void, time is of the essence.
“But right now, of course, there are no data centers in unincorporated Shelby County. But do we understand this is our window of opportunity. We must establish strict uniform regulations before the concrete is poured, not after it’s dried,” Brooks responded.
The moratorium ordinance proposal passed 5-4. Voting in favor were Will Richardson, Erika Sugarmon, LaShanta Rudd, Charlie Caswell and Brooks. No votes came from Michele Dial, Derek Mills, Rhonda O’Dell and Billingsley. Commissioners Karen Streeter, Miska Clay Bibbs, chairwoman Shante Avant, and Huett-Garcia abstained.
