Nashville facing legal challenge to data center moratorium
DCB Nashville, a subsidiary of DC BLOX, has filed a lawsuit against the Metropolitan Government of Nashville and Davidson County over a moratorium enacted in July, which bars data center development until December 1st. The company alleges a "targeted attack" and refusal to process its permits, violating federal constitutional protections. DCB Nashville seeks a declaratory judgment against the ordinances and compensation for the $23 million property purchase if the court rules in Nashville's favor.
DCB Nashville, a subsidiary of DC BLOX, has initiated legal action against the Metropolitan Government of Nashville and Davidson County in the U.S. District Court for the Middle District of Tennessee. The lawsuit challenges a data center moratorium enacted by the Metro Council in July, which prohibits data center development until December 1st. DCB Nashville claims that Metro officials are unlawfully refusing to process its permits for a nearly 70,000 square-foot facility near the Nashville Zoo, alleging a "targeted attack" that violates federal constitutional protections.
The company had purchased the Grassmere Road property for $23 million in July, where a data center was already operating. The lawsuit also cites statements from Metro officials, including Councilmember Courtney Johnston and Mayor Freddie O’Connell, indicating their opposition to the Grassmere project. Additionally, the Metro Council approved a separate ordinance on July 1st, establishing buffer zones around sensitive sites like churches, schools, and zoos for data center construction, and another measure on August 4th allowing Metro to acquire DC BLOX's property via eminent domain.
DCB Nashville asserts that other data center projects and industrial facilities are not subject to comparable restrictions. The company seeks a declaratory judgment to void the ordinances against its project and requests just compensation for its property investment if the court rules in Nashville's favor. Metro Legal Director Tyler Yarbro stated confidence in the legality of Metro's actions and plans to defend against DC Blox's claims.
The project has also drawn bipartisan opposition, with U.S. Sen. Marsha Blackburn (R) and State Rep. Justin Jones (D) both publicly criticizing the data center's proposed location due to its proximity to the Nashville Zoo and Fisk University, respectively.