DC Blox sues Metro over proposed data center
DC Blox is suing Metro government in Nashville, Tennessee, claiming city leaders are illegally blocking a data center project that was previously approved. The lawsuit alleges that Metro is applying a new moratorium to the project despite legal advice that vested projects should be exempt. Metro officials are reviewing the lawsuit and preparing to defend their actions.
Data center company DC Blox has filed a lawsuit against Nashville's Metro government, alleging that city leaders are illegally obstructing a data center project that had already received approval from the Metro zoning office. According to News 2's Jaxi Pitchen, DC Blox claims to have paid $23 million for the property off Grassir Park Drive specifically for the data center, with permits filed and approved before Metro's new rules took effect.
Metro enacted a moratorium on data center permitting in July, and DC Blox's lawsuit states that this moratorium is being applied to their project, despite Metro's own legal team reportedly advising that vested projects should not be affected. The property is located next to the Nashville Zoo, and the lawsuit suggests the neighbor has played a role in the dispute. The complaint highlights a council member, who sponsored the moratorium, publicly stating her intent to prevent the project, which DC Blox argues indicates the moratorium was not a neutral pause but specifically targeted at their development. Metro has also initiated condemnation proceedings to acquire the property.
In response to the lawsuit, Metro Law Director Tyler Yarro stated that Metro Legal is reviewing the claims and preparing to defend the city. Yarro expressed confidence that Metro has acted lawfully regarding DC Blox and the enactment of the data center moratorium. DC Blox has not yet provided a comment, and a hearing date for the lawsuit has not been set.