
Residents protest as Sulphur Springs allots $1.2 million for cost of data center lawsuits
News ClipKLTV.com·Sulphur Springs, Hopkins County, TX·5/6/2026
The Sulphur Springs City Council has approved a budget amendment allotting $1.2 million for legal fees to address two lawsuits related to a planned AI data center. The lawsuits were filed by the land's previous owners and a city resident, while other residents also protested the decision.
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Gov: Sulphur Springs City Council, City Attorney Nate Smith, Mayor Tyler Law
The Sulphur Springs City Council voted to amend its budget to allocate $1.2 million for legal fees, addressing two lawsuits stemming from plans to build one of the country's largest AI data centers in partnership with developer MSB Global. The decision was made amidst protests from residents who questioned the use of taxpayer dollars and the lack of public input.
One lawsuit was filed by Vistra Corp. and Luminant Mining, the land's former owners, who allege the city violated a deed restriction preventing energy production or storage on the site. City Attorney Nate Smith has contested the validity of this deed restriction. Separately, resident Jack Curtis has sued the city, claiming leaders failed to adequately disclose project details to the community.