In a heated city council meeting on Tuesday, leaders in Memphis, Tennessee, voted against a moratorium that would have paused data center development for a year in the city, which has become a hotspot for the facilities driven by Elon Musk’s SpaceXAI.

Instead, city council members passed a substitute ordinance — which some said they received on short notice and did not have time to review — that would halt construction of data centers for 135 days.

Residents and activists have pushed back against data center development in the region for years, starting with the construction of SpaceXAI’s Colossus 1 data center in 2024. The company has also built two other data centers and has two under construction in Memphis and the surrounding region, including across the state border in Southaven, Mississippi. 

Also in Southaven, a plant powering the company’s data centers is using methane gas turbines, which prompted a lawsuit from the NAACP and other organizations over alleged pollution.

SpaceXAI did not reply to a request for comment. The Trump administration moved to dismiss the case, but earlier Tuesday, a Mississippi federal judge blocked that bid. 

Supporters of data centers argue they are needed to support the growth of artificial intelligence technology. Advocates also say they will create much-needed jobs, although experts counter many of those jobs are in the construction industry and therefore temporary.

The moratorium would have paused the construction of new data centers for a year, allowing the city to adopt permanent zoning and development regulations as well as establish disclosure requirements for data center applicants. It also would have provided the opportunity to study impacts on air quality, electrical infrastructure, water protection and noise. The moratorium would not have halted existing data center operations.

The language of the ordinance that was passed Tuesday states that it is intended to complement Memphis Mayor Paul Young’s executive order to establish a 90-day period to study the impacts of data center development. 

Many attendees in the chambers appeared shocked and confused at the proposal for the new ordinance. A few members of the crowd remained in the chambers following the vote where they sang, chanted and vocalized their frustrations. 

The city council’s move comes after a postponement of the vote earlier this month spurred protests in the chambers and resulted in an early end to an Oct. 6 meeting. 

Community members’ opposition to data center development in Memphis is reflective of the broader attitude across America in recent months. According to a recent Pew Research Center survey, over half of Americans say they’re not comfortable with a new data center operating in their area — a sentiment that’s spilling over into city council meetings and town halls across the country.

Ahead of the vote, KeShaun Pearson, the executive director of the Memphis Community Against Pollution, said that community members were concerned about what they feel has been a lack of transparency from local government officials and data centers’ environmental impact. 

“It’s as if the people who have been elected to protect us and to stand up to corporations and be that representative have just completely abdicated that responsibility, and left us to fend for ourselves,” he said. 

Pearson and his brother, Tennessee Rep. Justin Pearson, were among a handful of people barred from city council meetings following the protests at city hall earlier this month. 

A federal judge lifted the ban and the two were present during the vote. Pearson and the group have sued the city council over the ban.