Lawsuit Challenges Nebius Data Center Project and City Regulations in Birmingham
Oxmoor Valley residents have filed a third lawsuit against Nebius, Lakeshore Data Center, Hoar Construction, and the city of Birmingham, seeking to halt construction of the 300-megawatt BHM01 project. The lawsuit contends that recently approved zoning ordinance revisions are void and that project permits issued after a moratorium are defective. A judge is scheduled to hear arguments for a temporary restraining order.
Oxmoor Valley residents Robert Sansome and John Hilley have filed a third lawsuit against the Lakeshore Data Center, Hoar Construction, Nebius, and the city of Birmingham, aiming to stop the 300-megawatt BHM01 project. The plaintiffs, who live within 1,000 feet of the site, argue that the city's recently approved zoning ordinance revisions (adopted June 9) are void due to improper publication and arbitrary changes.
The lawsuit also claims that BHM01 was not an allowable development under the city's previous zoning ordinance, which did not explicitly mention data centers. It asserts that permits issued for the project after a data center moratorium went into effect on December 16, 2025, are defective. Critics also point out that Nebius allegedly failed to obtain special exceptions for utility substations, leaving its application incomplete.
Jefferson County Circuit Court Judge Tamara Harris Johnson is set to hear the plaintiffs' request for a temporary restraining order to halt work on the project. This legal action follows previous attempts to block the development, which has proceeded despite a moratorium, significant community opposition, and new regulations, as the city council deemed the project "grandfathered in." Residents have reported nuisance from construction, including noise, vibration, and traffic, and fear erosion of property values. The lawsuit also contests a $3.234 billion tax abatement package approved by the city's Industrial Development Board.