Shares of Solaris Energy Infrastructure fell 9% to $53.49 in midday trading on Thursday, extending losses from Wednesday’s close of $58.80 after a lawsuit and a municipal moratorium weighed on investor sentiment.
The decline came amid reports that the Memphis City Council had enacted a moratorium restricting new data center development within city limits. The move follows negative media coverage on Wednesday regarding a lawsuit tied to temporary turbines at the company’s Stateline power facility in Southaven, Mississippi. The facility, located outside Memphis city limits, includes a 900-megawatt behind-the-meter plant shielded by an uncontested Title V air permit, according to company filings.
Needham analysts noted that the temporary turbines at the center of the lawsuit are already scheduled for removal. They also emphasized that the Stateline project’s location in Southaven places it beyond the scope of the Memphis moratorium. The analysts added that the facility’s air permit remains uncontested, mitigating regulatory risk.
Investor caution has also been elevated by net insider disposals over the past year, which outpaced purchases. The stock’s slide occurred against a backdrop of subdued activity in the oilfield services and energy infrastructure sectors, where crude prices have remained range-bound and drilling activity measured.
The broader market showed modest declines, with the S&P 500 down 0.4%, the Dow Jones Industrial Average down 0.8%, and the Nasdaq Composite down 0.7%. Solaris Energy Infrastructure’s shares have fallen from a 52-week high of $86.19.
