Lost sleep, NDAs & closed meetings: Inside lawsuit seeking to halt Independence data center
Four Independence residents have filed a lawsuit seeking to halt the construction of a $150 billion hyperscale AI data center by Nebius. The lawsuit, backed by the Independence GUARD Alliance, challenges the city's zoning decisions, its alleged lack of transparency regarding public meetings and records, and the project's energy generation plans. It also cites concerns over noise, water pollution, and quality of life for nearby residents.
Four Independence residents, Howard and Mary Hoff, Dawn Hahnfeld, and Milan Sinclair, have filed a comprehensive lawsuit aiming to stop the construction of a $150 billion, 400-acre hyperscale artificial intelligence data center developed by Nebius. The plaintiffs, who live near the construction site, are supported by the Independence GUARD Alliance and attorneys experienced in data center litigation.
The lawsuit, which spans 16 claims and over 300 points, challenges several key actions by the City of Independence. It argues against the city's 2022 decision to rezone the land, previously surrounded by residential and agricultural areas, for commercial purposes without sufficient legal justification. Furthermore, the suit contests a 2024 amendment to the zoning code that designated "data processing and hosting" as a permitted use for light industrial areas, effectively fast-tracking data center projects by reducing approval requirements. The plaintiffs contend the current construction scale is more suited for heavy industrial zoning, which would entail stricter regulations.
The suit also raises concerns about transparency and public engagement, alleging that city leaders and Nebius representatives held closed-door meetings and discussed the project at city meetings without public comment sessions, in violation of state transparency laws. It further claims that the city failed to adequately respond to public records requests under Missouri's Sunshine Law. Regarding infrastructure, the lawsuit questions the legality of Nebius's involvement in a joint business venture, Independence Power Partners, to fund and administer the expansion of the Blue Valley Power Plant to generate 800-1,200 megawatts, arguing that city charter requires a public vote for such involvement and that profits should lower residential electricity rates. Finally, the plaintiffs assert that the data center's construction has negatively impacted their health and quality of life through noise, dust, water pollution, and construction vehicles, and that the city has failed to enforce its own ordinances against Nebius's alleged violations. While Nebius claims cooperation with local laws, the lawsuit points to specific ordinance breaches and contends the city issued a partial construction permit without a full site plan.