Request capacity
MARKETS · MEMPHIS–NORTH MISSISSIPPI

Memphis data centers for AI.

An emerging AI market on the TVA grid, spanning Memphis and North Mississippi. We search here for space and power for GPU deployments, and check local rules before you commit.

LD Advisors · Updated October 25, 2026

MARKET SNAPSHOT · 2026

An emerging market built around large AI campuses.

~2 GW

AI compute planned at one developer's Memphis-area campuses

$20B+

Announced AI investment in Southaven, MS

11–32 GW

New generation TVA says it needs by 2040

47%

TVA carbon-free power, fiscal 2025

Memphis has grown around a few very large AI projects. Power comes from TVA, which approves large loads itself, so timing depends on the TVA process as much as on the building.

Power, incentives and local rules

  • TVA's board must approve new loads of 100 MW or more.
  • TVA approved a data center rate class on August 20, 2026: about a 10% bill increase over three years, plus capacity commitment charges.
  • The Memphis City Council rejected a data center moratorium in a 6–6 vote on October 20, 2026. Follow-on rules are still being settled.
  • Mississippi offers a 10-year sales and use tax exemption for projects investing $20 million and creating 20 jobs. Tennessee exempts qualifying equipment and taxes data center electricity at 1.5%.
  • Mississippi regulators issued an air permit for on-site gas turbines at a Southaven project in March 2026.
  • Grid and water: TVA's power was 47% carbon-free in fiscal 2025. A planned $80 million wastewater recycling plant for one large campus, sized for up to 13 million gallons a day, is paused and expected to resume by Q1 2027.

Sources: Office of the Governor of Mississippi (Jan 8, 2026); TVA (Aug 20, 2026); Landgate (Aug 25, 2026); WSMV (Feb 12, 2026); Mississippi Today (Jul 29, 2026); SELC; WWD (Jun 24, 2026).

Common questions

Is there data center capacity in Memphis?

Some, mostly tied to new projects. Large loads need TVA approval, so we check power timing for each site before we introduce it.

What does TVA's new data center rate mean for a GPU deployment?

Bills for data center customers rise about 10% over three years, plus capacity commitment charges. In colocation, these costs can show up in power pricing.

Did Memphis pass a data center moratorium?

No. The city council rejected one in a 6–6 vote on October 20, 2026. Follow-on rules are still being settled.

What tax incentives apply in Memphis and North Mississippi?

Mississippi offers a 10-year sales and use tax exemption for qualifying projects. Tennessee exempts qualifying equipment and applies a 1.5% tax on data center electricity.

All markets →

REQUEST CAPACITY

Tell us what you need to deploy.

We'll come back the same business day. Details stay under NDA, and we can take your requirement to operators anonymously.

Have capacity to fill? List your capacity

Got it. Your requirement is in.

We'll reply the same business day. If you'd like an NDA in place first, say so in your reply and we'll send ours.

That didn't go through. Email contact@ldadvisors.ai and we'll pick it up from there.