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Guide to the Proposed Shelby County Data Center Ordinance

1 hour ago
10 min read

Commissioner Amber Huett-Garcia drafted an ordinance based on early versions of the Memphis City Council's proposed rules for data centers. She brought it to the Shelby County Commission. This guide explains what the rules would do. It also shows how they connect to other plans and who would help carry them out.

What the Ordinance Is For

An ordinance is a local law. A data center is a building full of computers that run all day and all night. These computers use a lot of power. Many data centers also use water to keep the computers cool.

This law would set rules for data centers in unincorporated Shelby County. These are the parts of the county that are not inside a city or town, such as Memphis or Millington. Right now, no data centers operate in these areas. No data center plan has come before the Commission. In October 2026, the Division of Planning and Development said on the record that no one has shown interest in these areas. This is largely because these areas lack the power, water, and sewer service needed to build one. This law would put rules in place before any plans come in.

Which Projects It Covers

  • All new data centers. A data center that will use 20 megawatts of power or more, either when it opens or within 10 years, is called a large data center. A large data center would also have to turn in a report on how it would affect the power grid.

  • Data centers that grow, add buildings, or are built in stages. Owners would have to share their full plans so the whole project is reviewed at once.

  • Existing buildings that are converted into data centers after the law takes effect.

  • Data centers that are already running. They could keep running. Within 12 months, they would report how much water and power they use and how they cool their computers. Any expansion would have to follow the new rules. If a data center's power use grows by 20% or more, it would be reviewed like a new large data center.

What It Would Require

Water

  • Cooling systems that reuse water or use no water at all. Systems that let water dry up into the air would not be allowed. Systems that use water once and then dump it would not be allowed either.

  • No pulling large amounts of water from the aquifer or rivers for everyday cooling. The aquifer is the water under the ground (groundwater) that Shelby County residents drink. A public review could allow an exception. No new private wells for cooling.

  • For cooling, public drinking water could be used only for the first fill of the system, replacing water that is lost, repairs, emergencies, or another use that is specifically approved.

  • Water meters and a yearly water report. A licensed engineer would also certify the plan to save water.

Electricity

  • Clean power, like solar or wind, for at least 60% of the power a new data center uses when it opens. That goes up to 75% after 3 years, 90% after 6 years, and 100% after 10 years. Buying clean power or clean energy credits can count.

  • Fuel-burning backup generators could run only during power outages, declared emergencies, required tests, or repairs; to protect life or key equipment; or when the utility or emergency officials require it. They could not be the everyday main power source.

  • The data center would pay for the new power lines and gear it needs, as far as state law allows.

Public Reporting and Enforcement

  • A public list of data centers that anyone can see. It would show how much power and water each one needs. It would also show how each one cools its computers and how much clean power it uses. Business secrets would be kept private.

  • Each year, an officer, manager, or engineer of the data center would sign a form. It would say the data center follows the rules.

  • If a data center breaks the rules, the County could use the enforcement tools it already has under County and state law. Following the rules would also be required to get permits and approvals. 

How It Relates to the Moratorium

A moratorium is a pause. Commissioners Henri Brooks and Erika Sugarmon have a separate new law drafted. It would pause new data center permits in the same areas. The Commission will vote on each plan on its own.

  • The proposed moratorium would pause new data center permits for up to 12 months while a study committee recommends permanent rules.

  • This law would set the rules now, without waiting for a study. 

If both pass, the pause would end when these rules start. That way, there is no gap between them. This could happen before the 12 months are over.

How the County and City Plans Compare

The City of Memphis and Shelby County are each working on data center rules. Each makes its own choices, but Commissioner Huett-Garcia’s goal is to work toward a joint ordinance (law), since the City and County share a planning division. This would also make it easier to attract businesses that add to the local tax base by showing them that, no matter where they want to build, all elected bodies follow the same rules. However, the City Council and County Commission may end up with different rules.

Similarities

  • Shared code: Memphis and Shelby County share one book of land-use rules, called the Unified Development Code (UDC). They also share one planning office. Each government passed the code on its own, so each must change its own copy.

  • Similar standards: In September 2026, the City shared a draft data center law with similar rules. It also uses a 20-megawatt size, water rules, and a clean power schedule. Commissioner Huett-Garcia has said she wants the City and County rules to move in step, since the two share a planning office.

Differences

  • Where the rules apply: The County law covers only areas outside cities. The City's rules cover land inside Memphis. That includes existing data center sites, such as those run by SpaceX. Other towns, like Millington and Germantown, make their own rules.

  • Legal authority: In Tennessee, cities have broad power to make health and safety rules. Counties can only use the powers the state gives them. This means the County relies on two state laws: 1) the County Zoning Act, for zoning rules, and 2) the County Powers Act, which lets the County use certain health and safety powers that cities have.

  • Vote required: Under the County Powers Act, a rule like this needs a two-thirds vote of the full Commission. That means at least 9 of the 13 commissioners must vote yes. Most votes need only 7. The rule also cannot limit what cities do.

  • Pause: In October 2026, the Memphis City Council passed a 135-day pause inside Memphis. Mayor Paul Young also gave the City 90 days to make a plan for data center rules. In the County, the proposed pause of up to 12 months is still a separate plan.

Matters Outside City and County Authority

State and federal matters: The law says it does not try to control matters that only the state, TVA, or the federal government control, such as power plants, the power grid, and power prices. On those topics, it would work only through local zoning and permits.

Who Is Involved

Many offices would help write, review, and carry out this law. Some are County offices. Others are City offices, the local utility, and state partners. Each would help before the vote. If the law passes, each would also help oversee it.

Shelby County

  • Commissioner Amber Huett-Garcia, District 13: She wrote this proposed law and brought it to the Commission, which applies only to unincorporated Shelby County land.

  • Shelby County Board of Commissioners: Votes on the law. Later, it could change the law.

  • Craig Barnes, Assistant County Attorney: Reviewed the law. If the law passes, his office would advise on enforcement. It would also approve other ways to buy clean power.

  • Land Use Control Board: This board must review the law and make a recommendation before the final vote. A future data center might need a zoning change or a special permit. If so, it would also go before this board. The board would use this law's rules in its review. Land Use and Development Services does the board's staff work.

  • Shelby County Mayor Mickell Lowery: After the Commission passes the law, it goes to the Mayor, who can sign or veto it. County staff would carry out the County's part of the work.

  • Shelby County Health Department: Protects air, water, and health across Shelby County. It also gives out air and well permits under its own rules.

Joint City and County

  • Memphis and Shelby County Division of Planning and Development, Director Brett Ragsdale: Would write the code changes needed to put the law in place. It could also set day-to-day steps. After the law passes, it would review data center plans. It would check that they follow the rules as part of the normal permit process.

  • Memphis Light, Gas and Water (MLGW): MLGW is the only electric and gas provider in Shelby County. It is also the only water provider for Memphis and the areas outside cities. So any data center in those areas would be an MLGW customer. MLGW would give input on the code changes. Large data centers would also give the County records from MLGW showing whether power is available and what new lines or equipment they would need. 

City of Memphis

  • Memphis City Council: Sets land-use rules inside the City of Memphis.

  • Mayor Paul Young: Asked the City to make a plan for data center rules.

  • Memphis Public Works and Engineering: Would give input on the code changes. The law also names the City Engineer. The City Engineer could approve other cooling types that do not use evaporation, approve some water releases for safety or repairs, and decide whether the first water fill can be supplied safely. The City Engineer could also write rules to carry out the law.

State and Research Partners

  • Tennessee Department of Environment and Conservation: The law notes what this state agency says. Local leaders may make rules on where data centers go. That includes zoning, noise, and local services.

  • UT Center for Local Planning: This law includes the group's guide to the County Powers Act. The guide explains the County's legal power.

How the Commission Would Work With Partners

The Commission would work closely with these offices during the review. If the law passes, that work would go on for as long as the law is in place. Passing the law is only the first step. After that, these partners would review projects, check that the rules are followed, and report to the Commission each year.

After the Ordinance Passes

  • Reviewing projects: Owners would turn in water-saving plans, power grid reports, and records from MLGW. Staff would check that each project meets the rules as part of the normal permit process.

  • Monitoring: Data centers would send yearly water reports and signed forms to the County. The County could check water meters. It would also keep the public list of data centers up to date.

  • Enforcement: If a data center breaks the rules, the County could use its usual tools under County and state law. These include notices of violation, civil penalties, and limits on permits and expansions.

  • Reporting to the Commission: Each year, the Commission would get a report. It would cover water use, power use, clean power, costs, and generator use. It would also cover any problems, how they were handled, and ideas for changes, if needed.

How the Ordinance Moves Forward

Committee meetings happen on the Wednesday before each Monday Commission meeting. In committee, commissioners ask questions. Then they vote on whether to send an item to the full Commission. Nothing passes in committee. 

A committee vote is only a recommendation, and it affects where the item appears on Monday's agenda. An item with a favorable recommendation is placed on the consent agenda, though any item can be pulled for discussion. An item with no recommendation or an unfavorable recommendation is not placed on the consent agenda and is discussed again before the Monday vote.

The real votes happen at Monday Commission meetings. A law must pass at least three of these votes, called readings. The Commission can hold more readings if it chooses.

Here is the expected schedule. It is based on the Commission's meeting calendar. Dates could change if the Commission delays a vote or amends the ordinance.

  • Oct. 21, 2026: First discussed in committee.

  • Nov. 18, 2026: Committee discussion and recommendation vote.

  • Nov. 23, 2026: First reading vote at the Commission meeting.

  • Dec. 9, 2026: Committee discussion and recommendation vote.

  • Dec. 14, 2026: Second reading vote at the Commission meeting.

  • Jan. 6, 2027: Committee discussion and recommendation vote.

  • Jan. 11, 2027: Third and final reading vote at the Commission meeting, if the Land Use Control Board makes its recommendation on Dec. 3. If the board takes it up on Jan. 14 instead, the final vote would move to Feb. 1, 2027, the next Commission meeting. At least 9 of the 13 commissioners must vote yes.

  • Land Use Control Board: The board meets at 9 a.m. on Thursdays. Its next meetings are Dec. 3, 2026, and Jan. 14, 2027. It must review the law and make a recommendation before the final vote.

  • After it passes: The law goes to the Mayor, who can sign or veto it. The planning office would then write the code changes.

You can read the full ordinance on the Commission's Oct. 21 committee agenda.

Sources

 
 

Amber Huett-Garcia

For a Safe and Healthy Shelby County

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