City of Memphis
This restriction takes precedence while in effect. The rating below excludes temporary restrictions.
Neutral Data Center Policies
Memphis enacted a temporary pause of up to 135 days on new data-center applications and approvals; existing centers may continue operating, and permanent standards still require adoption.
current law · City of MemphisEstablishes binding zoning, subdivision, and development requirements for Memphis and unincorporated Shelby County, covering land use, building envelopes, infrastructure, parking, landscaping, stormwater, natural resources, and public improvements; no development may proceed without prior authorization under the Unified Development Code.Shelby County Zoning Regulations
What this means
Data centers are not specifically named, so approval may involve some uncertainty, though the code lists data processing as an office use. Ordinary site-plan and utility requirements may add some time or cost, but there is no special ban or major data-center restriction.
Restrictions & requirementsHide restrictions & requirements23
A data center is not expressly listed as a principal use. It is prohibited unless the Zoning Administrator determines it is similar to a permitted use; otherwise, a zoning text amendment is required before it may be allowed. Any applicable standards or special-use review for the similar use also apply.
If a proposed data center includes multiple principal uses in different use categories, each use must satisfy its applicable regulations, and the entire development is reviewed under the most restrictive approval process applicable to any proposed use.
New construction and qualifying changes, expansions, or parking-area expansions for a data center generally require administrative site plan review. No building permit may be issued, and construction or alteration may not begin, until the applicable site plan is approved.
Data centers classified as office uses generally must provide one off-street parking space per 300 square feet of floor area; a call-center classification requires one space per 150 square feet. The CBD, SCBID, and MU districts have no minimum off-street parking requirement, and an alternative parking plan may be requested with supporting parking data.
When applicable development thresholds are met, a data center must comply with district and development-type requirements for streetscapes, access management, parking and loading, landscaping and screening, outdoor storage, lighting, and signs.
New outdoor lighting at a data center abutting or immediately across a public right-of-way from a single-family residential zoning district, when applicable development thresholds are met, requires compliance with the outdoor-lighting code, including a lighting plan, fixture cut sheets, lumen limits, and backlight, uplight, and glare limits.
Major loading areas must generally be screened from residential properties and public rights-of-way, located to the side or rear of the building unless fully enclosed and not visible, and set back at least 25 feet from an abutting single-family residential district.
Major utility infrastructure must generally be screened by a Class III landscape buffer or an approved equivalent alternative. Required access ways to major utilities are exempt from the screening requirement.
A data center in a mixed-use or industrial district without public water must generally be on a site of at least four acres, subject to Shelby County Health Department approval. A site with public water but without public sewer or an approved individual treatment facility must generally be at least two acres and is also subject to Health Department approval.
New building construction and certain expansions in the Medical Overlay, University District Overlay, and SCBID special districts require site plan review. The expansion trigger is removal of more than 25% of existing walls facing a public street or more than 50% of all exterior walls, subject to limited exceptions for certain single-family residential projects.
Site plan review may require dedication and improvement of public streets, sidewalks, and other public infrastructure, and approval may be conditioned to address traffic, parking, public facilities, natural features, and effects on surrounding properties.
Before required public improvements are constructed, approved plans, profiles, specifications, and applicable right-of-way or street or utility-cut permits are required. Required improvements must be covered by a standard improvement contract.
Required public improvements generally must be secured by a performance bond, cash deposit, certificate of deposit, or irrevocable letter of credit. A full bond must cover 100% of estimated improvement costs, and off-site public improvements must be fully bonded.
Developers must pay the costs of connecting to required public utilities, including water, sanitary sewer, and stormwater improvements. Where public water is within a reasonable distance, the applicant may be required to fund the connection, and sewer extensions may be required to serve upstream development.
All development, including data-center development, is subject to the Memphis and Shelby County Storm Water Management Manual and its stormwater design and compliance requirements.
Tree removal generally requires a notice of intent filed 10 to 45 working days before removal, a tree survey, and, in specified circumstances, a tree-removal permit. Exceeding the tree-removal matrix can require replacement with four live trees of at least 2.5-inch caliper for each removed tree or payment to the tree bank.
Trees designated for preservation must be protected by fencing or barriers at least three feet high extending ten feet beyond the trunk. Construction materials, debris, equipment, and vehicles are prohibited within the protection zone.
Development on natural steep-slope areas of at least 5,000 square feet and 25% grade is limited: no more than 15% of the site's steep-slope area may be graded, and development must minimize disturbance to the natural landform.
Stream buffers must be maintained on both sides of qualifying streams, with a minimum width of 30 feet unless a greater width is required. Buildings must be set back at least 10 feet from the buffer, and most activities within the buffer are prohibited except limited utility and infrastructure work.
A proposed subdivision of at least five acres or 50 lots located partly or entirely in an A-zone special flood hazard area, when required flood-elevation or floodway data is unavailable, must submit detailed hydrologic and hydraulic plans prepared by a registered professional engineer.
New electric utility services generally must be placed underground where functionally feasible, and electrical substations must be at least 100 feet from the nearest property line of a parcel in a single-family residential zoning district.
In the Medical Overlay and University District Overlay, trash, recycling, loading, and mechanical equipment must meet enhanced location and screening requirements, including opaque service-area enclosures at least eight feet high and, in specified cases, a 50-foot separation from residentially zoned property.
Within the Medical Overlay, surface parking lots are prohibited unless accessory to a permitted principal use or approved by special exception. Required parking may be reduced by up to 25% only under the overlay's stated parking provisions.
Benefits & exceptionsHide benefits & exceptions17
Data processing is expressly included among office uses, allowing a data center to be evaluated within the Code’s Office use category rather than as an unlisted use: offices including ... data processing.
The Employment (EMP) District accommodates office, research and development, light manufacturing, warehousing, wholesale, processing, and commercial uses, providing zoning options for different data-center configurations: office, light manufacturing, research and development, warehousing.
The Warehouse and Distribution (WD) District allows office/warehouse, warehouse/distribution, and wholesale uses and recognizes high-traffic, 24-hour operations: broad range of office/warehouse.
Office, light-industrial, warehouse/distribution, and heavy-industrial uses may include accessory offices, parking, storage, electric-vehicle charging, and accessory solar or building-mounted wind systems: Accessory solar energy system.
Utility facilities are recognized as permitted use categories, including electrical substations, electric or gas transmission facilities, water and wastewater pump stations, and major utility facilities: Minor utilities, including ... electrical substation.
Campus Master Plan districts accommodate office, research and development, light manufacturing, and processing uses, with clustering opportunities intended to improve efficiency: allowing for clustering opportunities.
Within CMP-1 and CMP-2 Internal Campus areas, outdoor-lighting and outdoor-storage standards do not apply internally. Lighting at the district edge must still comply with Code limits, and infrastructure, parking, landscaping, access, and natural-resource requirements remain applicable: the standards of Chapter 4.7 ... shall not apply.
Planned Development approval may provide relief from district and other Code requirements and allow flexible land-development and site-design techniques. It is available for any-size tract in Memphis and for tracts of at least three acres in unincorporated Shelby County, subject to findings concerning compatibility, infrastructure, landscaping, and the public interest: providing relief from district requirements.
No minimum off-street parking is required in the CBD, SCBID, or MU Districts: No minimum off-street parking spaces are required.
Ground-mounted photovoltaic systems smaller than 20 acres within the fenced area may be accessory uses in all zoning districts when primarily serving on-site consumption and remaining incidental and subordinate to a permitted principal use; building-mounted photovoltaic systems are accessory uses in all districts: permitted as an accessory use in all zoning districts.
Electric transmission and distribution feeder lines and communications trunk and feeder lines may be placed above ground within easements or public rights-of-way; other new electric services must be underground only where functionally feasible: Electric transmission and distribution feeder lines and communications trunk and feeder lines may be placed above ground.
Administrative site plan review is available for qualifying new construction, expansions, and parking construction or expansion in SCBID special-purpose districts. The Medical Overlay and University District Overlay also provide administrative review for most development other than exclusively residential single-family projects: Applications shall be reviewed administratively.
Existing nonconforming uses in SCBID districts and certain overlay districts are governed by Article 10, providing continued regulatory treatment if an existing facility later does not conform to changed district standards: Existing nonconforming uses are governed by Article 10.
Parking reductions of up to 25 percent are allowed in the Medical Overlay District based on public transportation availability, subject to applicable geometric requirements and possible special-exception modifications: Parking reductions of up to 25 percent are allowed in the Medical Overlay District.
A building permit issued before the effective date of the Code or a later amendment remains effective if development began within six months and the permit remains valid under the building code: shall remain in effect provided that development has started within six months.
Complete zoning and subdivision applications pending when the Code became effective are processed under the law in effect when filed: complete and pending at the effective date.
Previously approved planned developments and planned commercial districts generally remain governed by their existing governing-body conditions. Uses permitted under a former zoning classification remain permitted rather than becoming nonconforming: those uses permitted under the former zoning district classification shall be permitted.
Sources
current law · City of MemphisNames a 2026 City of Memphis executive order concerning data center policy review, but does not specify the review process, affected parties, obligations, or implementation status.City of Memphis Executive Order on Data Center Policy Review (2026)
People behind it
- City of Memphis
Identified in the title as the issuing government for the executive order.
Sources
current law · City of MemphisWould regulate the siting, development, construction, expansion, alteration, and operation of data centers in Memphis and Shelby County, with requirements applying to every new large data center and other new, expanded, converted, or phased facilities.Memphis Ordinance No. 5367 Data Center Development Standards Amendment
What this means
The proposal would pause new data-center applications and approvals for up to 135 days while the city prepares permanent rules, making new projects harder to start in the near term (temporary pause). Existing operations and legally protected rights are exempt, and the stricter long-term rules are only to be drafted, not adopted by this measure.
Timing
- Ends
- At 11:59 p.m. on the 135th calendar day after the ordinance's effective date, or earlier when comprehensive permanent data-center land-use and siting ordinances are lawfully adopted and become effective and enforceable.
The moratorium applies to new data-center applications and specified City development approvals. It may not be administratively extended; any extension requires separate legislative action by the Memphis City Council. The permanent data-center standards development and related provisions remain in effect.
People behind it
- Rhonda Logan
Named sponsor of Substitute Ordinance No. 5986 and co-sponsor of the proposed permanent data-center UDC amendment.
- Dr. Jeff Warren
Named sponsor of Substitute Ordinance No. 5986 and co-sponsor of the proposed permanent data-center UDC amendment.
- Jana Swearengen-Washington
Named sponsor of Substitute Ordinance No. 5986 and co-sponsor of the proposed permanent data-center UDC amendment.
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- Cooper-Sutton
Named co-sponsor of the proposed permanent data-center UDC amendment.
- Easter-Thomas
Named co-sponsor of the proposed permanent data-center UDC amendment.
- Walker
Named co-sponsor of the proposed permanent data-center UDC amendment.
- Memphis City Council
Legislative body proposing and enacting the ordinances and requesting preparation of permanent UDC amendments.
- Division of Planning and Development
Responsible for preparing the data-center classifications, siting analysis, proposed UDC text amendment, and implementation guidance.
- City Council Staff
Requested to prepare proposed UDC text amendments for consideration through Ordinance No. 5987.
- Law Division
Responsible for legal guidance, determining the lawful scope of the temporary pause, and advising on its administration.
- Director of Planning and Development
Authorized to promulgate administrative rules necessary to administer the permanent data-center regulation.
- City Engineer
Authorized to promulgate administrative rules and administer specified cooling-water and initial-fill requirements.
- Water Services Director
Authorized to promulgate administrative rules necessary to administer the permanent data-center regulation.
- Sustainability Officer
Authorized to promulgate administrative rules necessary to administer the permanent data-center regulation.
- City Clerk
Directed to codify the ordinance in the City Code and applicable portions of the Unified Development Code.
Restrictions & requirementsHide restrictions & requirements19
A 135-day temporary pause bars the City from accepting, processing, hearing, approving, issuing, or granting most new data-center applications, permits, and land-use or development approvals. The pause ends earlier if permanent standards take effect and cannot be administratively extended. temporary pause
The temporary pause does not apply where it would unlawfully impair vested property rights, previously granted entitlements, legally protected preexisting applications, or other rights protected by Tennessee or federal law. It also allows protected work under existing permits, ordinary repairs, emergency corrections, and work required by governmental order. exemptions and vested rights
Every new data center, conversion, campus, phased project, and expansion must obtain all applicable zoning, land-use, site-plan, building, utility, environmental, and other approvals, and cannot be approved without demonstrating compliance with the ordinance. development approval required
A large data center is defined as one with projected electrical demand of at least 20 megawatts or one designed to reach at least 20 megawatts within 10 years, subjecting those facilities to the ordinance's large-data-center requirements. 20 megawatts
Applicants must disclose the property's maximum reasonably anticipated buildout, including ultimate building area, electrical demand, computing capacity, cooling systems, water demand and sources, wastewater, backup generation, battery storage, renewable procurement, carbon-based electricity, and future phases. Projects may not avoid the requirements by dividing a campus among buildings, owners, applications, phases, or permits. ultimate development disclosure
All new data centers must use closed-loop cooling that continuously circulates and reuses water without routine evaporative consumption. Once-through, open-loop, routine evaporative cooling towers, and routine cooling-water blowdown or discharge are prohibited, subject only to limited City Engineer approval for system safety or maintenance. closed-loop cooling required
Routine cooling may not use groundwater, surface water, municipal drinking water, aquifer water, rivers, lakes, reservoirs, or other local water resources when the withdrawal is a major water withdrawal. New private wells for primary cooling are prohibited, and diversions from listed local resources require legal authorization, separate City approval, and public review. major local water withdrawals
Routine cooling cannot use treated potable water from the City's public water system except for initial filling of an approved closed loop, unavoidable losses, emergencies, necessary maintenance, or another expressly approved use. Intentional evaporative cooling with potable water is prohibited. potable water restrictions
Applicants must submit a professional-engineer-certified Water Conservation and Resource Protection Plan covering cooling specifications, water demand and sources, anti-evaporation and anti-discharge procedures, leak detection, metering, recycling, emergencies, and wastewater management. Water Conservation and Resource Protection Plan
Data centers must install separate meters for total facility water, cooling water, makeup water, non-cooling water, and, where feasible, wastewater discharge, and must submit annual reports on water consumption, sources, losses, discharges, and emergency withdrawals. separate water metering
New data centers must match at least 60% of annual electricity consumption with qualifying renewable or non-carbon electricity at commercial operation, 75% after three years, 90% after six years, and 100% after ten years. renewable energy schedule
New data centers may not exceed annual carbon-based electricity limits of 40% in years 1–3, 25% in years 4–6, 10% in years 7–9, and 0% beginning in year 10. carbon-based electricity limits
Fossil-fuel backup generators may operate only for outages, declared emergencies, required testing, maintenance, protection of life or critical equipment, or utility or governmental emergency requirements; they cannot be the routine primary supply, and new facilities must evaluate battery and renewable backup alternatives. fossil-fuel generator limits
An expansion increasing electrical demand by 20% or more must be reviewed as a new large data center. Expansions increasing water demand, cooling equipment replacements, and phased expansions must comply with the ordinance and cannot avoid its requirements through phasing. expansion threshold
Existing lawfully operating data centers must submit specified water, cooling, electricity, renewable-energy, generator, maximum-demand, and expansion-plan information within 12 months after the ordinance's effective date; major expansions require compliance with the ordinance. existing data-center reporting
Applicants must identify and, to the extent permitted by law, bear incremental electrical infrastructure costs attributable to the proposed development, and must document anticipated electrical infrastructure requirements. electrical infrastructure costs
Before approval of a large data center, the applicant must provide a Grid and Energy Impact Statement covering demand, consumption, peak load, interconnection, renewable procurement, storage, carbon-based electricity, infrastructure needs, and available-service information from the serving utility where lawfully obtainable. Grid and Energy Impact Statement
Compliance is a condition of zoning, site-plan, special-use, building-permit, certificate-of-occupancy, material-expansion, and other development approvals. Violations may result in notices, civil penalties, permit suspension, denial of expansions, revocation where authorized, injunctions, and enforcement-cost recovery. permit condition and enforcement
The proposed permanent UDC amendments must establish data-center classifications and determine where each classification is prohibited, allowed subject to standards, or allowed only after Special Use Approval or another authorized land-use review. The proposed standards may address residential separation, sensitive resources, setbacks, buffers, noise, generators, substations, cooling equipment, access, and phasing. location and siting standards
Benefits & exceptionsHide benefits & exceptions16
Lawfully operating data centers may continue their existing operations after the regulation takes effect, subject to existing law. Existing Data Centers lawfully operating before the effective date ... may continue their lawful operations.
The temporary moratorium does not apply where it would unlawfully impair vested property rights, previously granted entitlements, legally protected applications, or other rights protected by state or federal law. The temporary pause shall not apply to the extent application of the pause would unlawfully impair a vested property right.
Projects with valid permits or development approvals issued before the moratorium may continue to the extent protected by law, including projects that had commenced before the ordinance took effect. work authorized by a valid permit or development approval issued before the effective date.
The moratorium allows ordinary repair and maintenance of lawfully established existing data centers. ordinary repair or maintenance of a lawfully established existing data center.
The moratorium allows permits and work needed to address immediate health, life-safety, fire, structural, environmental, or emergency conditions, as well as work required by a governmental order. permits required solely to correct an immediate health, life-safety, fire, structural, environmental, or emergency condition.
The moratorium is time-limited: it ends after 135 days or earlier when permanent data-center land-use and siting ordinances become effective, and it cannot be administratively extended. The pause shall not be administratively extended beyond the 135-day period.
The interim moratorium definition excludes ordinary server rooms, telecommunications equipment rooms, network closets, and similar accessory computing equipment, so those incidental installations are not treated as new data centers for the pause. The term shall not include an ordinary server room.
The permanent-regulation process is required to create a distinct data-center classification, identify applicable zoning districts, and establish approval mechanisms through which data centers may be permitted. proposed data-center use classifications and applicable land-use approval mechanisms.
The data-center text amendment must be prepared and initiated within 90 days, and completion of the broader UDC update cannot delay that targeted amendment. Completion of the broader Unified Development Code update shall not be a prerequisite.
Applicants may be able to rely on information already submitted to another public entity, reducing duplicative disclosure work, when the information has already been provided or evaluated by an agency with jurisdiction. the proposed UDC amendment shall establish disclosure requirements and DPD may coordinate with such entities to obtain and consider information already submitted.
Closed-loop cooling systems may use limited potable water for initial filling, unavoidable losses, emergencies, maintenance, or another City-approved use. initial filling of an approved closed-loop cooling system.
A data center may use a major local water withdrawal for routine cooling if it receives express legal authorization and separate City approval following public review; the prohibition is not absolute in that circumstance. unless expressly authorized by applicable law and separately approved by the City following a public review.
The regulation permits several non-evaporative cooling technologies, including air cooling, dry cooling, direct-to-chip cooling, rear-door heat exchangers, immersion cooling, and closed-circuit cooling. Acceptable cooling technologies may include.
Fossil-fuel backup generators may operate during outages, declared emergencies, required testing, maintenance, equipment-protection events, or when required by utilities or emergency authorities. Fossil-fuel generators may operate only.
Carbon-based backup-generator use for emergency response, legally required testing, maintenance, or grid emergencies is excluded from the limits on routine carbon-based electricity consumption. shall not be considered routine electricity sources.
Renewable-energy compliance may be met through multiple procurement methods, including onsite generation, utility programs, long-term power-purchase agreements, community programs, and legally recognized retired renewable-energy certificates. Qualifying renewable electricity may include electricity generated from.
Sources
current law · City of MemphisWould impose, once effective, a temporary pause on new data-center applications and City approvals for up to 135 calendar days, subject to protections for vested rights, existing permits, and specified health, safety, repair, and maintenance work.Memphis Substitute Ordinance No. 5986 (2026)
What this means
The measure would pause new data-center applications and approvals for up to 135 days—a significant short-term obstacle to building new facilities. Existing centers could keep operating, and the proposed permanent standards would still need to be developed and adopted, so this is not a lasting ban.
Timing
- Ends
- At 11:59 p.m. on the 135th calendar day after the ordinance's effective date, or earlier when comprehensive permanent data-center land-use and siting ordinances are lawfully adopted and become effective and enforceable.
The temporary pause applies to new data-center applications and specified development approvals. It may not be administratively extended; any extension requires separate legislative action. The permanent data-center standards and related provisions remain in effect.
People behind it
- Rhonda Logan
Named sponsor of Substitute Ordinance No. 5986.
- Dr. Jeff Warren
Named sponsor of Substitute Ordinance No. 5986 and identified on the Council agenda as its sponsor.
- Jana Swearengen-Washington
Named sponsor of Substitute Ordinance No. 5986.
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- Division of Planning and Development
Responsible for preparing the proposed Unified Development Code amendments, conducting the required analyses, coordinating consultation and public engagement, and administering specified implementation tasks.
- Law Division
Responsible for advising on legal implementation of the temporary pause, determining which applications and approvals are covered, and addressing vested-rights and other legal questions.
Restrictions & requirementsHide restrictions & requirements9
A temporary 135-day pause prohibits new data-center applications and specified City approvals, beginning when the ordinance takes effect and ending at 11:59 p.m. on the 135th calendar day, unless permanent regulations take effect sooner. The pause cannot be administratively extended. temporary pause
During the pause, City departments, boards, commissions, officers, and employees may not formally accept, process, schedule for hearing, hear, approve, issue, or grant new applications, permits, or land-use or development approvals for establishing or constructing a new data center. no City department
The pause covers zoning changes, special-use or other discretionary approvals, site-plan and development-plan approvals, grading approvals, building permits authorizing construction, and other City development approvals determined legally subject to the pause. Covered applications and approvals include
The pause does not apply where it would unlawfully impair vested property rights, previously granted entitlements, legally protected applications submitted before the effective date, or other rights protected by Tennessee or federal law. It also allows certain preexisting permitted work, ordinary repairs and maintenance, emergency or legally ordered work, and other activity the Law Division determines must be allowed. shall not apply
The ordinance requires DPD to develop a distinct data-center use classification, potentially including separate classifications based on electrical demand, water demand, building size, acreage, cooling systems, backup generation, utility infrastructure, phasing, and other intensity characteristics. distinct principal-use classification
The required permanent UDC amendment must identify districts where each data-center classification is prohibited, allowed only with specified standards, or allowed only after Special Use Approval or another authorized land-use review. prohibited
The proposed permanent regulations must consider added siting and development controls, including residential and sensitive-use separation, setbacks, landscape buffers, noise mitigation, generator and fuel-storage controls, utility infrastructure, cooling equipment, screening, fencing, landscaping, access, emergency access, service areas, and development phasing. setbacks and landscape buffers
The proposed UDC amendment must establish disclosure requirements for project-specific electrical and water demand, power and water sources, cooling-related water use, wastewater, stormwater, generators and fuel storage, noise, utility infrastructure, phasing, expansion, and required infrastructure improvements. projected peak electrical demand
DPD must create objective criteria for determining when expansion, intensification, or modification of an existing data center is a material expansion or material change requiring additional land-use review, including increases in building area, site area, electrical or water demand, generation, cooling, utility infrastructure, phases, noise, or other impacts. material expansion or material change
Benefits & exceptionsHide benefits & exceptions8
The ordinance directs DPD to create a distinct data-center use classification and a formal process for reviewing applications for new data centers, subject to later UDC amendment and approval. Section 1
The planned UDC amendment must identify zoning districts where each data-center classification may be prohibited, permitted with standards, or allowed through special-use or another authorized review process, creating potential approval pathways for future facilities. Section 2
The temporary pause is expressly limited to 135 days and cannot be extended administratively; any extension requires separate City Council legislation. Section 10(B)
The pause does not apply where it would unlawfully impair vested property rights, previously granted entitlements, legally protected applications submitted before the ordinance took effect, or other rights protected by Tennessee or federal law. Section 10(D)
Projects with valid permits or development approvals issued before the effective date may continue work, if they had commenced before that date and continuation is protected by law. Section 10(D)(1)
Lawfully established data centers may continue operating during the temporary pause, and ordinary repair or maintenance is expressly allowed. Sections 10(D)(2) and 10(E)
The pause does not prohibit permits for immediate health, life-safety, fire, structural, environmental, or emergency corrections, work required by a lawful governmental order, or other activity that the Law Division determines must be allowed under applicable law. Section 10(D)
An ordinary server room, telecommunications equipment room, network closet, or similar computing equipment that is accessory and incidental to another lawful principal use is excluded from the interim definition of a data center and therefore is not covered by the temporary pause. Section 10(F)
Sources
pending · City of MemphisPauses new data center applications and approvals in Memphis for up to 135 days while the city develops permanent siting and development rules, with exceptions for protected rights and certain existing or emergency work.Memphis Ordinance No. 5985 — Data Center Operating Standards (2026)
What this means
If enacted, it would pause new data-center applications and approvals for up to 135 days and require the city to develop siting and disclosure rules that could add further hurdles. Existing centers could keep operating and legally protected projects are exempt, but the delay for new projects is substantial.
Timing
- Ends
- 11:59 p.m. on the 135th calendar day after the ordinance's effective date, or earlier when comprehensive permanent data-center land-use and siting ordinances are lawfully adopted and become effective and enforceable
The temporary pause applies to new data-center applications and specified development approvals. It cannot be administratively extended beyond 135 days; any extension requires separate legislative action. Provisions requiring development of permanent data-center standards remain in effect.
People behind it
- Rhonda Logan
Sponsor of Substitute Ordinance No. 5986.
- Dr. Jeff Warren
Sponsor of Substitute Ordinance No. 5986; the original Ordinance No. 5986 was also sponsored by Councilman Warren.
- Jana Swearengen-Washington
Sponsor of Substitute Ordinance No. 5986.
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- Chairman
Listed as a sponsor of Substitute Ordinance No. 5986.
- Division of Planning and Development
Directed to prepare the proposed Unified Development Code text amendments, conduct the required analyses, consult with stakeholders, and administer implementation tasks.
- Law Division
Responsible for legal consultation and guidance concerning the temporary pause, vested rights, covered applications, and implementation procedures.
Restrictions & requirementsHide restrictions & requirements10
A temporary 135-day pause prohibits City departments, boards, commissions, officers, and employees from accepting, processing, scheduling, hearing, approving, issuing, or granting new applications, permits, or City land-use or development approvals for establishing or constructing a new data center. The pause ends earlier if permanent data-center regulations are lawfully adopted and become effective, and it cannot be extended administratively.
During the temporary pause, covered applications include zoning changes, special-use permits, other discretionary land-use approvals, site or development plans, grading approvals, building permits, and other City development approvals determined by the Law Division to be subject to the pause.
The pause does not apply where it would unlawfully impair vested property rights, previously granted entitlements, legally protected applications submitted before the ordinance takes effect, or other rights protected by Tennessee or federal law.
The pause allows only limited exceptions for work authorized by preexisting valid permits on projects commenced before the effective date, ordinary repair or maintenance of existing data centers, correction of immediate health, life-safety, fire, structural, environmental, or emergency conditions, compliance with government orders, and other activity the Law Division determines must be allowed by law.
The proposed permanent UDC amendment must establish a distinct data-center use classification and may create separate classifications based on factors such as peak electrical demand, water demand, building size, site acreage, cooling systems, backup-generation capacity, utility infrastructure, and planned buildout.
The proposed permanent UDC amendment must identify where each data-center classification is prohibited, allowed only subject to development standards, or allowed only after special-use approval or another legally authorized land-use review.
The proposed permanent UDC amendment must evaluate or establish siting and development standards addressing residential separation, schools, childcare facilities, parks, waterways, floodplains, wetlands, groundwater, setbacks, buffers, noise, generators, fuel storage, substations, cooling equipment, lighting, screening, landscaping, access, emergency access, service areas, and phased buildout.
The proposed permanent UDC amendment must require applicants, to the extent legally permitted, to disclose infrastructure and resource information including peak electrical demand, electricity consumption and sources, water demand and sources, cooling-water requirements, wastewater, stormwater, backup generators and fuel storage, utility infrastructure, noise, development phases, future expansion, and required infrastructure improvements.
The proposed permanent UDC amendment must establish standards for existing data centers and objective criteria for determining when an expansion, intensification, or modification is a material expansion or material change requiring additional land-use review.
The ordinance requires the Division of Planning and Development to prepare proposed UDC text within 90 days and initiate the Land Use Control Board process, including definitions, classifications, zoning districts, approval mechanisms, siting standards, disclosure requirements, environmental considerations, phased development rules, and standards for material expansion or modification.
Benefits & exceptionsHide benefits & exceptions8
The temporary pause on new data-center applications and approvals lasts no more than 135 days and ends earlier if permanent data-center land-use and siting ordinances are lawfully adopted, so it is not a permanent prohibition.
The pause does not apply when doing so would unlawfully impair vested property rights, previously granted entitlements, legally protected applications submitted before the ordinance takes effect, or other rights protected by Tennessee or federal law.
Projects with valid permits or development approvals issued before the ordinance takes effect may continue work if they commenced before the effective date and the work is protected by law.
Lawfully established existing data centers may continue operating during the temporary pause, subject to applicable law.
Existing data centers may perform ordinary repairs and maintenance during the temporary pause.
The pause does not prohibit permits needed solely to correct immediate health, life-safety, fire, structural, environmental, or emergency conditions.
The pause does not prohibit work necessary to comply with a lawful governmental order or other activity that the Law Division determines must be allowed under applicable law.
The proposed permanent zoning amendment must identify zoning districts where data centers may be prohibited, permitted subject to standards, or permitted through special-use or another authorized land-use review, thereby establishing potential approval pathways for data centers.
Sources
pending · City of MemphisPauses new data-center applications and development approvals for up to 135 days while the city prepares permanent siting and development rules, with exceptions for protected rights and certain existing work.Memphis Ordinances Nos. 5987 and 5988 — Data Center Unified Development Code Amendments (2026)
What this means
The measure would pause applications and approvals for new data centers for up to 135 days, making it harder to start a project during that period (temporary pause). Existing centers could keep operating, and legal rights and certain necessary work are exempt. The pause is temporary, but the measure also directs the city to develop new siting rules, whose eventual impact is not yet specified.
Timing
- Ends
- 11:59 p.m. on the 135th calendar day after the ordinance's effective date, or earlier when comprehensive permanent data-center land-use and siting ordinances are lawfully adopted and become effective and enforceable
The temporary pause applies to new data-center applications and specified development approvals. It does not apply where doing so would unlawfully impair vested rights or previously granted entitlements, and it permits certain repair, maintenance, safety, and legally required work. The pause cannot be administratively extended; any extension requires separate legislative action. The permanent standards-development provisions remain in effect.
People behind it
- Yolanda Cooper-Sutton
Sponsor of the resolution requesting comprehensive data-center standards.
- Jeff Warren
Sponsor or co-sponsor of the data-center zoning ordinances, including Ordinances Nos. 5986 and 5987, and sponsor of the substitute Ordinance No. 5986.
- J. Ford Canale
Co-sponsor of Ordinance No. 5987 establishing data-center zoning amendments.
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- Philip Spinosa
Sponsor of Ordinance No. 5985 and co-sponsor of Ordinance No. 5987.
- Chase Carlisle
Co-sponsor of Ordinance No. 5987.
- Janika White
Co-sponsor of Ordinance No. 5987 on the October 20 agenda.
- Rhonda Logan
Sponsor of the substitute Ordinance No. 5986.
- Jana Swearengen-Washington
Sponsor of the substitute Ordinance No. 5986.
- Chairman
Explicitly listed as a sponsor of the substitute Ordinance No. 5986.
- Memphis City Council staff
Requested to prepare proposed Unified Development Code amendments for data-center classifications and review procedures.
- Division of Planning and Development
Responsible for preparing the data-center UDC amendments, conducting siting analyses, consulting stakeholders, and reporting on implementation.
- Law Division
Responsible for legal consultation, guidance on the temporary pause, and determining which applications and approvals are legally subject to it.
- City Attorney
Authorized to approve additional renewable-energy procurement mechanisms and consulted on implementation.
- City Engineer
Authorized to approve limited cooling-water discharge and participate in administering the data-center standards.
- Water Services Director
Authorized to promulgate administrative rules for implementing the data-center ordinance.
- Sustainability Officer
Authorized to promulgate administrative rules for implementing the data-center ordinance.
- City Clerk
Directed to codify the ordinance in the City Code and applicable Unified Development Code.
Restrictions & requirementsHide restrictions & requirements19
A temporary 135-day pause prohibits the City from accepting, processing, hearing, approving, or issuing approvals for new data-center applications and construction, unless permanent regulations take effect sooner. The pause does not apply where it would unlawfully impair vested rights, previously granted entitlements, legally protected applications, or other rights protected by law.
New data centers must obtain all applicable zoning, land-use, site-plan, building, utility, environmental, and other City or legally required approvals before establishment, construction, expansion, enlargement, or material modification.
The permanent framework requires data centers to be classified by scale and land-use intensity, with zoning districts designated where each classification is prohibited, allowed only with standards, or subject to special-use or other land-use review.
A large data center is defined as one with projected electrical demand of at least 20 megawatts, or one intended to reach at least 20 megawatts within 10 years of initial occupancy.
Applications for new data centers must disclose ultimate development details, including maximum building area, electrical demand, computing capacity, cooling systems, water demand and sources, wastewater, backup generation, battery storage, renewable procurement, carbon-based electricity use, and future phases. Applicants may not evade the requirements by dividing a campus into separate buildings, owners, applications, or phases.
All new data centers must use closed-loop cooling. Open-loop, once-through, and routine evaporative cooling are prohibited, and routine cooling-water blowdown or discharge is prohibited except when specifically approved for safety or maintenance.
Data centers may not use local groundwater, surface water, municipal drinking water, aquifers, rivers, lakes, reservoirs, or other local water resources for routine cooling when the withdrawal is a major water withdrawal. New private wells primarily serving routine cooling are also prohibited.
Diversion of water from the Mississippi River, Wolf River, Nonconnah Creek, aquifers, reservoirs, lakes, or other local resources for routine cooling requires authorization under applicable law and separate City approval following public review.
Routine cooling may not use treated potable water from the City system except for initial closed-loop filling, unavoidable losses, emergencies, necessary maintenance, or another expressly approved use. Intentional evaporative cooling may not use potable water.
Every applicant must submit a professionally certified Water Conservation and Resource Protection Plan covering cooling systems, water demand and sources, evaporation prevention, discharge prevention, leak detection, metering, recycling, emergencies, and wastewater management.
Data centers must separately meter facility water, cooling water, makeup water, non-cooling water, and, where feasible, wastewater discharge, and must submit annual reports documenting water use, sources, losses, authorized discharges, and emergency withdrawals.
New data centers must match at least 60% of annual electricity consumption with renewable or other non-carbon electricity at operation, 75% after three years, 90% after six years, and 100% after ten years.
New data centers may not exceed carbon-based electricity limits of 40% in years 1–3, 25% in years 4–6, 10% in years 7–9, and 0% beginning in year 10. Emergency, legally required testing, maintenance, and grid-emergency generator use is excluded from routine electricity consumption.
Fossil-fuel backup generators may operate only during outages, declared emergencies, required testing, maintenance, protection of life or critical equipment, or when required by an electric utility or government emergency authority. They may not serve as a routine primary power supply, and new facilities must evaluate battery and renewable backup alternatives.
Expansions must demonstrate compliance with the data-center regulations. An expansion increasing electrical demand by 20% or more is reviewed as a new large data center, and expansions increasing water demand must comply with the cooling, water-use, conservation, metering, and reporting requirements.
Existing data centers may continue lawful operations, but must submit water, cooling, electricity, renewable-energy, generator, maximum-demand, and expansion-plan information within 12 months of the permanent ordinance's effective date. Major expansions require compliance with the ordinance.
Data-center applicants must identify and, to the extent permitted by law, bear incremental electrical-infrastructure costs attributable to their projects, and must document anticipated infrastructure requirements.
Before approval of a large data center, the applicant must submit a Grid and Energy Impact Statement addressing demand, consumption, peaks, interconnection, renewable procurement, storage, carbon-based electricity, infrastructure needs, and available service information from the serving utility.
Data centers must annually certify compliance through an authorized officer, manager, or responsible engineer. Knowingly submitting false information is a violation, and the City may impose notices, civil penalties, permit suspensions, expansion denials, approval revocations where authorized, injunctions, and other lawful remedies.
Benefits & exceptionsHide benefits & exceptions12
Lawfully operating existing data centers may continue their operations, subject to existing law, rather than being required to comply retroactively with all new standards. (Existing Data Centers lawfully operating before the effective date)
Existing data centers may perform ordinary repairs and maintenance during the temporary pause on new data-center applications and approvals. (ordinary repair or maintenance)
The temporary pause does not apply where it would unlawfully impair vested property rights, previously granted entitlements, legally protected applications submitted before the ordinance, or other rights protected by state or federal law. (vested property right)
Projects with valid preexisting permits or development approvals may continue work, to the extent protected by law, even during the temporary pause. (valid permit or development approval)
The temporary pause allows permits needed solely to correct immediate health, life-safety, fire, structural, environmental, or emergency conditions, and allows other activity that the Law Division determines must legally be allowed. (immediate health, life-safety, fire, structural, environmental, or emergency condition)
An expansion of an existing data center that increases electrical demand by less than 20 percent is not automatically required to be reviewed as a new Large Data Center, although it must still comply with other applicable requirements. (increases the facility’s electrical demand by twenty percent)
New data centers may use several non-evaporative cooling technologies, including air cooling, dry cooling, direct-to-chip cooling, rear-door heat exchangers, immersion cooling, closed-circuit cooling, and other technologies approved by the City Engineer. (Acceptable cooling technologies may include)
The water rules permit limited use of treated potable water for initial filling of an approved closed-loop cooling system, unavoidable system losses, emergencies, maintenance, or another City-approved use. (initial filling of an approved closed-loop cooling system)
Data centers may satisfy renewable-energy requirements through a broad range of options, including onsite generation, utility programs, long-term power-purchase agreements, community programs, and legally recognized retired renewable-energy certificates. (Qualifying renewable electricity may include)
New data centers may continue using some carbon-based electricity under a phase-out schedule: up to 40 percent in years 1–3, 25 percent in years 4–6, and 10 percent in years 7–9, reaching zero in year 10. (Years 1-3: forty percent)
Fossil-fuel backup generators may operate during outages, declared emergencies, required testing, maintenance, to protect life or critical equipment, or when required by the utility or governmental emergency authority. (Fossil-fuel generators may operate only)
The temporary pause does not cover an accessory and incidental ordinary server room, telecommunications equipment room, network closet, or similar computing equipment serving another lawful principal use. (ordinary server room)
Sources
failed · City of MemphisPauses approvals and permits for new data centers in Memphis for up to 18 months while the city develops permanent siting and operating rules.Memphis Ordinance No. 5982 — Temporary Data Center Moratorium (2026)
What this means
The measure would pause approval and processing of most new data center applications, including permits, while the city develops permanent rules. The pause lasts up to 18 months, making this a major short-term barrier, though existing facilities can continue operating if they do not expand.
Timing
- Ends
- The earliest of: 18 months after the ordinance's effective date; adoption and operative implementation of comprehensive permanent data-center zoning and development regulations after completion of required community engagement and reporting; or repeal, modification, or termination by a subsequent Council ordinance.
The 90-day deadline for presenting recommendations may be extended by the Council based on a written progress report demonstrating the need for additional time. The moratorium does not end merely upon completion of community engagement or submission of the final report; permanent regulations must also be adopted and operative.
People behind it
- JB Smiley, Jr.
Sponsor of Substitute Ordinance No. 5982
- Jana Swearengen-Washington
Sponsor of Substitute Ordinance No. 5982
- Jerri Green
Sponsor of Substitute Ordinance No. 5982
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- Dr. Michalyn Easter-Thomas
Sponsor of Substitute Ordinance No. 5982
Restrictions & requirementsHide restrictions & requirements12
Establishes a temporary moratorium beginning on the ordinance’s effective date: applications may be accepted only for docketing and completeness review, but may not be processed, scheduled, heard, approved, or issued.
During the moratorium, the City may not process rezoning, planned-development, special-use, conditional-use, site-plan, building, grading, land-disturbance, or other discretionary land-use applications for new data centers or high-density computing facilities.
The moratorium also prevents City departments, boards, commissions, agencies, and officials from approving covered applications, and tolls applicable review deadlines to the extent permitted by law.
Existing data centers are exempt only if they do not expand their building footprint, electrical demand, utility capacity, or operational intensity; expansions that increase any of those factors remain subject to the moratorium.
A moratorium waiver is available only through the City Council and requires written findings that strict application would deny the applicant all economically viable use of the property.
Before the moratorium ends, the City must complete a community-engagement process that includes at least three geographically distributed public meetings, a public-comment period of at least 30 days, and a final community-engagement report.
Future data centers may be permitted only in development areas identified through the required siting process and approved by the City Council through the legally required land-use and ordinance process; such areas cannot be designated administratively.
Designation of a data-center development area does not guarantee project approval, reserve utility capacity, waive permits or regulatory requirements, or create a vested right.
Future qualifying applications must satisfy a substantial-compliance framework requiring, among other things, legal site control, ownership and affiliate disclosures, a full-campus plan, phase schedules, maximum site electrical demand, utility-load projections, energy and operations plans, water and wastewater projections, environmental and safety information, evidence of financial capacity, payment of lawfully required study deposits, and disclosure of requested discretionary public development value.
Applicants seeking MLGW electric service must obtain the applicable MLGW study or readiness statement and comply with MLGW large-load service and capacity requirements; City approval cannot reserve or guarantee electric capacity.
Self-supplied, behind-the-meter, and hybrid facilities must disclose and address their complete site-wide electrical demand and provide information on generation, fuel, emissions, noise, cooling, water use, safety, fire protection, storage, interconnection, emergency operations, decommissioning, and construction phasing.
The moratorium lasts until the earliest of 18 months after its effective date, adoption and operative implementation of comprehensive permanent data-center regulations following the required engagement and reporting process, or repeal, modification, or termination by a later ordinance.
Benefits & exceptionsHide benefits & exceptions9
Existing lawfully operating data centers and high-density computing facilities may continue operating if they do not expand their building footprint, electrical demand, utility capacity, or operational intensity.
Routine maintenance, repair, replacement, or modernization of an existing facility may proceed during the moratorium if it does not materially increase operational impacts.
Applications legally vested under state or local law before the ordinance was introduced are exempt from the moratorium and may continue under the applicable vested-rights protections.
Accessory computing infrastructure serving another lawful principal use is excluded from the moratorium, including servers and related equipment used by hospitals, financial institutions, schools, government facilities, offices, retail businesses, manufacturers, and telecommunications facilities.
An applicant may seek a City Council waiver if applying the moratorium would deny all economically viable use of the property; the waiver requires written Council findings.
During the moratorium, the City may accept data-center applications for docketing and completeness review, although the applications may not be processed, heard, approved, or issued until the moratorium ends.
The ordinance establishes a process for designating one or more areas where future data centers and high-density computing facilities may be permitted under permanent development standards and objective siting criteria.
The future energy-review framework must be source-neutral and recognize both utility-served or hybrid facilities and self-supplied or behind-the-meter facilities, rather than excluding facilities based solely on their energy source.
A facility that does not use MLGW electric service, or uses onsite generation or an independent power producer, does not need MLGW approval unless approval is required by applicable law, contract, utility service, interconnection, backup-service, or safety requirements.
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