Markets / Memphis
C&W 2026 grid-stability top 10 · Grid stability #8 · updated 2026-11-05
Memphis / North Mississippi
The largest single AI cluster build, now with a federal court constraint on its on-site power model.
mixedGrid: MLGW / TVA; Entergy Mississippi; on-site turbines
Not in C&W's Americas top 30, but listed #8 for grid stability [Cushman & Wakefield, 2026 Global Data Center Market Comparison (Americas rankings) (2026-05)]
Power and the queue
- SpaceXAI's Southaven turbines: Mississippi permitted 41 permanent turbines (~1.2 GW). A federal judge ruled on Nov 2, 2026 that the turbines need air permits, and temporary units are under an agreed order for removal. [Mississippi Today: Federal judge rules Southaven data center gas turbines must have air pe (2026-11-02); Commercial Appeal: SpaceXAI, Southaven enter agreed order to remove temporary turbines (2026-07-30)]
Notable projects owners where public
- SpaceXAI (xAI) Colossus 2, Tulane Road, Memphis: an estimated ~946 MW IT capacity (Epoch estimate), expanding into two more Mississippi campuses.uncertain [Epoch AI: Largest AI data centers ranked by power capacity, 2026 (2026-11-05); DCD: SpaceXAI launching two additional data center campuses in Mississippi to expand Colos (2026)]
Regulatory posture incentives, moratoria, zoning, water, large-load rules
- Behind-the-meter gas faces Clean Air Act litigation, a template for challenges elsewhere. [Mississippi Today: Federal judge rules Southaven data center gas turbines must have air pe (2026-11-02)]
Pending legislation and actions 1 items
| Date | Jurisdiction | Item | Status | Impact | Source |
|---|---|---|---|---|---|
| undated | Memphis city | Proposed ordinance declaring a temporary moratorium on acceptance, processing, approval, and issuance of zoning, land use, building, and infrastructure permits for data center developments within the uncertain Duration: 12 months from effective date, or until comprehensive data center zoning is adopted or the ordinance is repealed, whichever is earlier; extendable | pending | medium | [https://wreg.com/wp-content/uploads/sites/18/2026/08/Data-Center-Temporary-Moratorium-Ordi] |
In force / enacted 4 items
| Date | Jurisdiction | Item | Status | Impact | Source |
|---|---|---|---|---|---|
| 2026-10-01 | TVA utility | Data center rate and capacity-commitment charge The board created a separate data center rate, effective Oct 1, 2026. | in force | high | [Nashville Post: TVA votes to increase rate payment for data centers (2026-08)] |
| 2026-05-18 | Tennessee state | HB1847 / SB2128 Applies to data centers at or above 50 MW. Requires data center owners to pay infrastructure costs needed to support utility service and bars ratepayer cost-shifting unless infrastructure also benefits other ratepayers. Reporting states amended bill also allow | enacted | high | [TN General Assembly Bill Status - HB1847 (114th GA)] |
| 2026-04-08 | Mississippi state | SB3410 (2026) Authorizes Brandon and the West Rankin Utility Authority to enter agreements with data center or related technology facility developers/operators for water and wastewater infrastructure, reclaimed water delivery, wastewater treatment, capacity guarantees, assi | enacted | high | [Mississippi Legislature - Senate Bill 3410 (2026) Status History] |
| 2026-04-08 | Mississippi state | HB1393 (2026) Creates the Mississippi Energy Infrastructure Fund. The definition of "project" includes data centers, making data-center-serving energy infrastructure potentially eligible for grants, loans, or other assistance through MDA, while excluding electric utilities | enacted | medium | [Mississippi Legislature - House Bill 1393 (2026) Status History] |
Pricing & supply snapshot directional
MW Desk estimate / directional range, Q4 2026
Not yet benchmarked. We have not published a directional colocation pricing or supply band for this market yet.
Ranges, when published, are indicative only and age quickly. Confirm with brokers and operators before acting.
TJ field notes
Coming soon: TJ's on-the-ground notes on this market. Expect what the queue really looks like, which sites can actually get power, and what the brokers aren't saying.
Slot reserved for TJ's detailed market report.