Legal Analyst: Kings Mountain faces lawsuit over AI data center property

An AI data center developer has filed a lawsuit against the City of Kings Mountain, North Carolina, alleging unlawful actions related to property intended for a data center project. According to Chief Legal Analyst Kelly Forbis, the lawsuit includes three claims: continued trespass, inverse condemnation due to the city's ongoing use of a buried line on the property, and the city's failure to disclose a conveyance easement. The developer purchased the property in 2023, recording the transaction. However, the previous owners reportedly conveyed an easement to the city in 2019 but failed to record it until after the developer's purchase. The developer argues this lack of recording meant they were unaware of the easement despite conducting title searches. They claim to have had multiple conversations with the city about their development plans, during which the easement was never mentioned. The lawsuit seeks a declaratory judgment, asking the court to affirm that the city's easement is invalid due to improper recording. The legal analyst believes the developer has a strong case, emphasizing the importance of proper record-keeping. The case is further complicated by a broader context of community pushback against data centers, with the city's actions potentially reflecting local opposition despite previous project approvals. The conversation also touched upon a six-month moratorium that might impact the building.