Memphis defers data-center water safeguards for further drafting

Memphis defers data-center water safeguards for further draftingMemphis City Council voted 7-5 to hold ordinances governing large data-center development, including a proposal requiring closed-loop water systems and barring major local-water withdrawals for cooling. The measures are to return on October 20 after a Planning and Zoning working session.

Ordinance No. 5986 would prohibit routine evaporative and once-through cooling at large-scale data centers and require closed-loop water-circulation systems.

The proposed ordinance would also prohibit major withdrawals of local water resources for data-center cooling and require water conservation and monitoring.

Council voted 7-5 to hold Ordinances 5985, 5986 and 5982, rather than take final action at the October 6 meeting.

A Planning and Zoning working session was scheduled for Thursday, with the held measures set to return to council on October 20.

Memphis City Council has postponed final action on a proposed data-center water-protection ordinance that would restrict cooling practices and limit withdrawals from local water resources, as members seek to consolidate competing approaches to regulating the sector. The council voted 7-5 on October 6 to hold Ordinance No. 5986, which would establish development and operating standards for large-scale data centers. Under the agenda language, the proposal would prohibit routine evaporative cooling and once-through cooling, require closed-loop water-circulation systems, bar major withdrawals of local water resources for data-center cooling, and impose water-conservation and monitoring requirements. The water rules were held with Ordinance No. 5985, a separate proposal to create a Strategic Large-Load Development and Digital Infrastructure District Program. That ordinance includes a Memphis Water Assurance Standard, as well as review provisions for major-load development. The council also held Ordinance No. 5982, a temporary moratorium on data-center permits. The action followed an extended debate over whether to enact the moratorium immediately or continue drafting a broader regulatory package. Councilman Smiley argued that a temporary pause could run alongside further work on permanent controls, saying a working session could address issues not yet covered, including traffic studies and potential property-value effects. Councilwoman Logan said the council's central authority was land use, zoning and siting. She said that without safeguards in the zoning framework, developers could continue to establish facilities where existing zoning allowed them. Councilwoman White supported further work to ensure any moratorium had sufficient administration, funding and access to experts, rather than serving only as a pause. Councilwoman Walker cited concerns over diminishing water resources among the potential consequences of rapid data-center development. She said the council should not commit the city to decades of infrastructure before the public knew who would pay, profit or bear the environmental and economic risks. The approved motion calls for a Planning and Zoning meeting on Thursday, followed by the return of the held ordinances on October 20. No final water-conservation requirements or data-center cooling restrictions were adopted at the October 6 meeting.