Residents file suit over OpenAI data center approval process

An environmental advocacy group, One Hundred Miles, and five Effingham County residents have filed a lawsuit against the Effingham County Industrial Development Authority (ECIDA). The suit alleges that the ECIDA violated Georgia's Open Meetings and Open Records Acts by negotiating a $20 billion OpenAI data center project behind closed doors. Plaintiffs claim the ECIDA used a codename, "Project Gateway," on a meeting agenda and failed to disclose an $800 million tax abatement package, denying residents meaningful public notice.

The lawsuit, filed by the Southern Environmental Law Center (SELC) on behalf of the plaintiffs, seeks to void the agreements that brought the project to Effingham County. SELC attorney Zachary Hennessee stated that the meeting where the deal was approved was rescheduled last-minute without proper notice, and the use of a codename effectively hid the project's details from the public. Hennessee hopes the lawsuit will cease the project in its current form and send a message about government transparency, especially given the surge of data center developments in Georgia.

ECIDA CEO Brandt Herndon acknowledged reports of the lawsuit but stated the Authority had not yet been formally served. He affirmed the ECIDA's commitment to legal processes and economic development while declining to comment on specific claims before a legal review.

This is not the first legal challenge related to data centers in Effingham County. Another lawsuit, filed by Dr. Michelle Finch-Mincey, Lehman Mincey, Jr., and Raymond Carver against Effingham County, alleges a lack of transparency and unlawful procedures in amending the county's zoning laws. Commissioners approved Ordinance 2026-352, which expanded the ability for industrial properties to permit data centers, an action challenged by the plaintiffs seeking to declare it invalid.