DeKalb County sued over moratorium on new data centers
Shadowbox Studios and Henrico 183 have sued DeKalb County, challenging a data center moratorium. The companies allege county officials initially assured them a data center was permissible on their 200-acre property before the moratorium was enacted, leading to a claimed $200 million loss in property value. They seek to overturn the moratorium and build their facility.
Shadowbox Studios and its affiliate, Henrico 183, have filed a lawsuit against DeKalb County, Georgia, seeking to invalidate a county-wide moratorium on new data center development. The companies claim they invested over $30 million in a nearly 200-acre property at 3600 International Park Drive, intending to build a data center, after receiving assurances from county planning officials between June 2023 and February 2025 that such a facility would be permitted under existing light industrial zoning. They had even requested 651 megawatts of power from Georgia Power for the project, indicating a significant data center development.
However, on July 8, 2025, the DeKalb County Board of Commissioners voted 4-3 to implement a temporary moratorium on data centers, which has since been extended multiple times, most recently through March 30, 2027. The lawsuit alleges that the county deliberately misled them and that the moratorium, which has diminished their property's value by $200 million, is an illegal "ruse" to ban data centers indefinitely.
Earlier this year, county officials denied their attempt to change a land disturbance permit from a film studio to a data center. A Zoning Board of Appeals meeting regarding this denial is scheduled for September 9. The lawsuit also highlights that weeks prior to the latest moratorium extension, commissioners had rejected planning staff's recommended land-use regulations for data centers, which the plaintiffs argue undermines the county's stated justification for the moratorium. The companies are seeking a ruling to declare the moratorium invalid, permission to build, and "just compensation" for alleged property rights violations and attorneys' fees. A DeKalb County spokesperson declined to comment on the pending litigation.