# Planning and Zoning Data Center Legislation Discussion - October 29, 2026

The Memphis City Council’s Planning and Zoning discussion on data center legislation, held October 29, 2026, focused on utility protections, community benefits, and potential zoning and legislative requirements. Tennessee Valley Authority (TVA) described a standardized data-center review process adopted by its board in August. TVA and Memphis Light, Gas and Water (MLGW) said applicants would be responsible for the full incremental cost of generation and required transmission and distribution upgrades, pay applicable rates and capacity charges, and accept curtailment provisions to protect existing ratepayers. Council members also discussed renewable generation, nuclear power, residential solar buyback rates, and a possible virtual power plant program; no procurement award or vote was made on these items.

MLGW reported that SpaceX/xAI had issued an RFP and selected a preconstruction contractor and a primary contractor for a proposed recycled-water facility, estimated at $250–$300 million, with work expected to begin in January. MLGW said it had no contract with the company to build the facility, though officials cited a company letter of commitment and other agreements related to the project; council members raised concerns about enforceability and requested further discussion. The committee also considered a proposed community-benefits agency that would require state legislation, data-center zoning measures, and the previously approved ordinance directing 25% of certain SpaceX tax revenue to nearby communities. The meeting included no recorded motions or votes; the council planned to continue its public review on November 9.

**Jurisdictions:** sled
**Industries:** Information Technology, Energy & Utilities
**Topics:** Physical Infrastructure
**Published:** October 29, 2026

### Sources
- [Planning and Zoning Data Center Legislation Discussion - October 29, 2026](https://www.youtube.com/watch?v=a9m-pknkx2E) - Memphis City Council