Franklin Coalition sues Data Center Developers, challenges approval process

Franklin Coalition sues Data Center Developers, challenges approval process

News ClipWNKY·Franklin, Simpson County, KY·4/6/2026

A citizens' group in Franklin, KY, has filed a lawsuit against data center developers and the local planning commission, challenging the approval of the "Project Lionsgate/Blackjack" data center. The lawsuit alleges improper zoning decisions and raises concerns about environmental impacts and developer authorization. This marks the second major legal challenge to the controversial project.

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Gov: City of Franklin Planning and Zoning Commission
In Franklin, Kentucky, the "Franklin Citizens for Responsible Development, Inc." has initiated a lawsuit against the City of Franklin Planning and Zoning Commission and several developers, including OTN Development Company and TenKey LandCo. Filed in Simpson Circuit Court, the legal action aims to invalidate the preliminary development plan approval for "Project Lionsgate/Blackjack," a large-scale data storage and power generation facility slated for 147 acres on Steele Road. The citizens' group asserts that the planning commission's March approval was "arbitrary, capricious, and contrary to law," contending the project was treated as a permitted use despite earlier indications that such a facility should require a conditional-use review. The lawsuit highlights a prior instance in 2025 where the commission rejected a zoning text amendment that would have explicitly permitted data centers and power generation in the area. Despite this, the project was later approved without ordinance changes or adequate explanation. Beyond zoning irregularities, the plaintiffs express apprehension regarding the project's potential adverse effects on nearby businesses and residents, specifically citing concerns about noise, odors, and other disturbances stemming from the facility's substantial size and power generation components. Furthermore, the lawsuit questions the legal standing of developers like OTN Development Company and TenKey LandCo, alleging they may lack proper authorization to operate in Kentucky, thereby undermining the legitimacy of the application process. The group seeks a court order to void the planning commission's approval, declare the project non-compliant with local zoning regulations, and issue an injunction to halt all further development. This lawsuit represents the second significant legal challenge against the project, which has sparked considerable community debate concerning economic development versus environmental and infrastructure implications.