El Segundo and Memphis Impose Data Center Moratoriums
City councils in El Segundo and Memphis passed moratoriums on data center construction following public concerns over health, zoning, and resource consumption.
Municipal governments in California and Tennessee have moved to restrict the rapid growth of data centers through new construction moratoriums. In El Segundo, the El Segundo City Council extended a moratorium on data center construction until September 2027. This decision follows a September vote by the Wiseburn Unified School District to oppose projects near schools, with critics citing risks of air pollution, high water consumption, and increased utility costs.
Simultaneously, the Memphis City Council passed an ordinance establishing a 135-day moratorium on data center development. The measure follows a failed attempt to implement a longer 18-month pause, which ended in a 6-6 tie. Under the new rules, the Division of Planning and Development will create a specific zoning classification for hyper-scale data centers to regulate their proximity to residential areas, parks, and schools.
These actions in Memphis complement a 90-day study ordered by Mayor Paul Young. The council also passed a community benefit ordinance on first reading to direct data center funding toward city projects, pending state legislative approval. In El Segundo, the local opposition had already forced a developer to withdraw an application for a five-story facility in July.
