Court hearing in case challenging Birmingham data center to resume next month
A court hearing in Jefferson County, Alabama, is set to resume next month in a lawsuit challenging the city of Birmingham's permitting of a hyperscale data center by Nebius and Hoar Construction. Residents Rob and Gail Sansome allege the city illegally permitted the project, violating zoning ordinances and causing harm from construction noise and vibrations. The lawsuit also questions the validity of permits issued before a temporary moratorium and new regulations were enacted, with the city contending the project is exempt.
A Jefferson County, Alabama, court hearing is scheduled to resume on August 12 in a lawsuit aiming to halt the construction of an 80-acre hyperscale data center in Birmingham's Oxmoor Valley neighborhood. The lawsuit, filed by residents Rob and Gail Sansome, targets the city of Birmingham, developer Nebius, and Hoar Construction, alleging the city illegally permitted the approximately 500,000-square-foot, 300-megawatt AI data center project. The plaintiffs contend that the city violated its zoning ordinance by categorizing the data center under an existing land use classification, especially since "data center" was not explicitly defined in the ordinance at the time permits were granted.
During two days of testimony this week, the Sansomes, who live 800 feet from the site, testified that noise and ground vibrations from the construction prevent them from enjoying their home. Katrina Thomas, director of Birmingham
’s Planning, Engineering and Permitting Department, defended the city's actions, stating she had the authority to categorize new land uses and that denying the permit would have been arbitrary as the project met existing ordinance requirements. She also confirmed that concerns raised by the Nebius project prompted the city to enact a temporary moratorium on data center construction in March and subsequently pass new data center regulations in June.
However, the city maintains the Nebius project is not subject to these new rules due to the timing of its permits. Attorney Mark Parnell, representing the Sansomes, highlighted that under the newly approved regulations, a hyperscale facility like Nebius's would not be allowed on the current site. Parnell's questioning of Thomas implied she should have been aware of the potential issues like noise, emissions, and high water/electric use associated with hyperscale data centers, as acknowledged by the city in its moratorium announcement. Nebius attorney Charles Prueter countered that the law does not change based on an announcement to consider new regulations, and Thomas acted responsibly under the zoning ordinance in effect. The current hearing focuses on the plaintiffs' request to suspend construction while the broader case proceeds, with Judge Javan Patton Crayton weighing the harm to plaintiffs and the likelihood of their success in the overall lawsuit.