Birmingham residents file class-action lawsuit over proposed Nebius AI facility

Residents in Birmingham's Oxmoor Valley area, led by plaintiffs Madelyn Greene and David Butler, have initiated a class-action lawsuit against Nebius and the City of Birmingham over a proposed 300-megawatt AI computing campus. The lawsuit, filed in Jefferson County Circuit Court, aims to stop the construction of the "Birmingham AI Factory" near Milan Parkway and Venice Road. Plaintiffs allege that the city allowed the project to proceed without necessary zoning approvals or public hearings, arguing that the mixed-use zoning of the site does not permit a hyperscale AI facility. The core of the legal dispute centers on a proposed power substation and switching station for the project, which residents claim required special approval from Birmingham's Zoning Board of Adjustment. These applications reportedly failed to garner enough votes for approval during a March zoning meeting, which saw significant community opposition due to concerns about environmental impacts, noise, and declining property values. The lawsuit also challenges an internal memo from Birmingham's city attorney, which allegedly stated that these facilities did not qualify as utility substations under city code, an action plaintiffs contend improperly overrode the zoning board's decision. Despite the unresolved zoning issues, demolition and grading work are reportedly underway, and the city has issued a permit worth approximately $7 million for the project. The plaintiffs are seeking a court order to halt further work and are asking for damages related to property values and quality of life. The City of Birmingham's Office of Public Information stated that it had not yet been served with the lawsuit and declined to comment on pending litigation.