Memphis adopts data-center water rules as moratorium falls short
City of Memphis, Public Works Division, Tennessee · Meeting date: October 20, 2026 · Published: October 22, 2026
Memphis has approved large-scale data-center standards centred on closed-loop cooling, restrictions on routine potable-water use and disclosure of water demand, while a separate temporary moratorium on permits failed on a 6-6 vote.
Key points
- Ordinance No. 5986 passed 7-5 on third and final reading.
- The approved framework applies to new data centers and expansions, with large facilities defined at 20MW of projected demand or more.
- The ordinance requires closed-loop, non-evaporative cooling and prohibits major local-water withdrawals for routine cooling operations.
- A proposed 18-month moratorium on data-center permits failed because it did not secure the seven affirmative votes required.
Full report
Memphis City Council has opted for permanent development controls rather than a temporary freeze on data-center permits, approving a water-focused regulatory framework for large facilities while a separate 18-month moratorium failed.
Council passed Ordinance No. 5986, covering the siting, construction, expansion and operation of large-scale data centers, by seven votes to five. The measure establishes requirements intended to limit the sector’s demand on local water resources, including a prohibition on routine evaporative and once-through cooling systems and a requirement for closed-loop water-circulation systems.
The ordinance defines a large data center as one with projected electrical demand of at least 20MW, or one designed to reach that level within 10 years of initial occupancy. Its requirements apply to new facilities, conversions and expansions that increase electrical demand, computing capacity, building area, cooling capacity or water demand.
For water use, applicants must disclose anticipated maximum water demand, water sources, wastewater discharge and cooling-system capacity across the expected full build-out of a site. Each applicant must also submit a water-conservation and resource-protection plan, certified by a Tennessee-licensed professional engineer. The plan must address cooling specifications, initial-fill requirements, annual and peak water consumption, water sources, makeup-water needs, leak detection, metering, recycling, emergency supply and wastewater management.
Routine cooling with potable water from the public system is barred except for the initial filling of an approved closed-loop system, unavoidable losses, emergencies, maintenance or another use expressly approved by the city. New private wells for routine data-center cooling are also prohibited. The ordinance further states that no data center may use groundwater, surface water, municipal drinking water, aquifer water, rivers, lakes or reservoirs for routine cooling where the withdrawal constitutes a major water withdrawal.
Facilities will be required to install separate meters for total incoming water, cooling-system water, makeup water, non-cooling water and, where feasible, wastewater discharge. Annual reports must cover total and cooling-water consumption, makeup water, source, initial fill, leakage, authorised discharge and emergency withdrawals.
The vote followed a lengthy public debate in which speakers called for a moratorium, citing concerns over aquifer protection, air quality, electricity demand and the need for community engagement before further projects proceed. Councilmember Janika White said she supported a pause, expert review and community benefits, but backed Ordinance No. 5986 because it includes a pause and study process.
A separate ordinance proposing a temporary moratorium on accepting, processing, approving and issuing data-center-related permits was then put to a vote. It received six votes in favour and six against, falling short of the seven affirmative votes required. The council subsequently approved same-night minutes for the data-center standards ordinance.
This summary was generated by AI based on the source document and may contain errors.
Source: City Council Meeting, City of Memphis, Public Works Division