Planning and Zoning Data Center Legislation Discussion - October 19, 2026

The Memphis City Council Planning and Zoning Committee held its second public hearing on data center ordinance standards and implementation on October 19, 2026, focusing on community protections related to water, air quality, noise, and neighborhood infrastructure. Experts discussed the Memphis aquifer, groundwater monitoring and contamination risks, alternatives such as recycled wastewater and Mississippi River water, and air-quality monitoring and permitting. The Shelby County Health Department described its well-permit review process and reported disparities in asthma-related emergency visits in areas with concentrated industry. Council members also discussed whether zoning and noise standards should be strengthened; no ordinance or procurement action was voted on at this hearing.

MLGW explained that it assesses system impacts before serving large industrial loads and may require the customer to fund needed infrastructure, with costs not passed to other ratepayers. The discussion referenced a reported $1.52 million-per-megawatt charge, a SpaceX facility water allowance of 1.28 million gallons per day, and a planned wastewater-recycling plant designed to process up to 10 million gallons per day; the company reportedly committed to resuming work by January 2027 and has spent $80 million on equipment. These were informational updates, not contract awards or council spending approvals. Members indicated that ordinance proposals would be discussed further at a subsequent meeting.