Memphis City Council approves $820,000 sale of Plant Road parcel amid community concerns over XAI data center and water use

The Memphis City Council voted 9–0, with one abstention, on March 18 to approve the sale of a city-owned parcel at 2685 Plant Road for $820,000, a vote that drew more than a dozen public speakers warning of environmental and procedural risks tied to XAI and related data‑center activity.

The resolution, sponsored by the administration and introduced as Item 15, authorizes the sale of the parcel identified as parcel ID 05010100054 in Shelby County (District 6, Super District 8). Councilman JB Smiley moved the item; Vice Chair Janice Swearingen Washington seconded. Council members cast their votes after an extended public‑comment period; Councilmember Logan recorded an abstention.

The matter drew sustained public comment from neighborhood and environmental advocates who said the sale is connected to XAI and raised unanswered questions about water use, air emissions and community engagement. Advocates urged the council to pause the sale until residents could review project designs and regulators could evaluate environmental impacts.

During public comment, Sarah Houston, identifying herself as a representative of Protector Aquifer, said the group supports a wastewater‑recycling facility but urged caution because of large current regional water withdrawals. "They are using 7,000,000 gallons of water a day, and they're competing with Boxtown, Westwood, Mallory Heights during extreme weather events," Houston said. She asked the council to press for greater transparency and local control over future data‑center approvals.

Amber Sherman, a resident of the area, told the council the community "wants the water reuse facility, but we also want a process to be followed so the community has a voice." Sherman and other speakers alleged the sale and related deals had proceeded without sufficient community outreach; Sherman also warned about health risks she attributed to continuous operation of gas turbines, citing long‑term exposure effects.

Attorney and private citizen Laurie Smith urged the council to require an environmental impact study and broader due diligence before finalizing transactions with companies tied to Elon Musk, citing ongoing disputes in other jurisdictions. "More transparency and research are needed, such as requesting an environmental impact study, more community input and involvement from the neighborhoods that will be directly affected," Smith said.

Other speakers raised related concerns: Kelsey Hughes, a former software engineer and current urban planning student, cautioned that promises of jobs and wastewater infrastructure should be evaluated against the company’s long‑term objectives; Haley Thomas cited media coverage alleging temporary‑use turbines and raised questions about payments and utility notices; Kimberly Davis and Christine Fox said Southwest Memphis and Boxtown have suffered disproportionate pollution and asked the council to deny the sale until plans and safeguards could be reviewed by the Land Use Control Board and the public.

Council deliberations reflected competing priorities. Councilwoman Pearl Iba Walker, who identified herself as co‑chair of the Memphis NAACP environmental and climate justice committee and as a civic‑engagement consultant for a clean‑energy group, said she supports a gray‑water facility in principle but pressed for clear accountability and safety assurances. "We need the wastewater facility. I support the wastewater facility, but to my colleagues, y'all, people need information and we need to know that this is safe," Walker said and invited constituents to an upcoming forum with the mayor.

Councilwoman Janika White framed the council's vote narrowly as approval of a sale of city property, not approval of a project. She said safeguards were added at committee, including a clawback clause she described as a contractual protection that would return the property to the city if contract conditions were violated. "This today is not a vote on a business. It's a vote on a sale of property," White said, and said she would work with colleagues to pursue regulatory and health‑department avenues.

Councilwoman Yolanda Cooper Sutton said the core complaint from residents was not opposition to the gray‑water idea but to the lack of engagement and unanswered technical questions. "They live in that community. They are the ones that have been affected for decades," she said, urging better outreach and answers before projects proceed.

After closing public comment, the council proceeded to vote. The clerk recorded votes as follows: Easter Thomas — yes; Jerry Green — yes; Rhonda Logan — abstain; Espinosa — yes; Janice Swearingen Washington — yes; Pearl Iba Walker — yes; Janice Warren — yes; Janika White — yes; Chairman Ford Canale — yes. The resolution passed and was recorded with same‑night minutes.

Next steps listed during the meeting included the administration’s planned closing and the community’s continued calls for a public review of designs, a Land Use Control Board review, and additional regulatory scrutiny by Shelby County and state authorities. Several speakers noted a public forum with Mayor Young and community leaders scheduled for 2 p.m. Saturday at Riverside Church on Third south of Mitchell Road.

The sale authorizes transfer of the identified parcel. The council’s approval does not, by itself, authorize construction permits or operating permits; those remain subject to regulatory review by agencies such as the Shelby County Health Department and the U.S. Environmental Protection Agency, and to any required Land Use Control Board proceedings.

Votes at a glance: Item 15 — sale of city parcel at 2685 Plant Road (parcel ID 05010100054) for $820,000; moved by JB Smiley, seconded by Janice Swearingen Washington; outcome — approved (recorded as passed in the council minutes).