DeKalb denies greenlighting Shadowbox Studios data center
DeKalb County is seeking to dismiss a lawsuit filed by Shadowbox Studios and Henrico 183 LLC, who claim the county denied them the right to build a data center after initially giving assurances. The companies allege the county's moratorium on data center development, extended through March 2027, devalued their property by $200 million. The county asserts its staff never gave final approval and that the lawsuit was filed after a deadline.
DeKalb County is actively challenging a lawsuit brought by Shadowbox Studios and its affiliate, Henrico 183 LLC, which claims the county improperly denied their plans to construct a massive 1.1-million-square-foot data center. The county asserts that while planning staff communicated with the companies about the project on a 166-acre property zoned for light industrial use, no final approval was given for construction.
Shadowbox Studios and Henrico 183 LLC filed suit on August 5, 2026, alleging they spent over $30 million based on written assurances from county planning officials between 2023 and 2025 that a data center could be built. They contend that the county's subsequent moratorium on data center development, implemented on July 8, 2025, and later extended through March 30, 2027, is invalid and has significantly devalued their property by $200 million.
In response, DeKalb County is asking a judge to dismiss portions of the lawsuit, arguing the companies missed a 12-month deadline to present their claims and filed suit prematurely before the county made an official decision on their request. The county also notes that its Zoning Board of Appeals upheld the planning staff's decision not to accept the companies' data center request, which was submitted after the moratorium was enacted. The county is represented by the law firm Hall Booth Smith and maintains it is protected by sovereign immunity.