Independence neighbors sue to stop construction of $150 billion AI data center
Neighbors in Independence, Missouri, have filed a lawsuit against the City of Independence and developer Nebius to halt construction of a $150 billion AI data center. The suit alleges multiple violations of city charter and state sunshine law, improper zoning, and issues regarding electricity funding, tax breaks, and environmental impacts. Residents are seeking to stop construction and receive compensation for disruptions caused by the project.
A group of Independence residents, affiliated with the Independence Guard Alliance, has filed a lawsuit in Jackson County to halt construction of a $150 billion hyperscale AI data center by Nebius. The 52-page suit, filed by attorneys Steve Jeffery and Aaron Cook on behalf of residents like Howard and Mary Hoff, Dawn Hahnfeld, and Milan Sinclair, names the City of Independence, Independence Power Partners, and Missouri ADC Holdings LLC (representing Nebius) as defendants.
The lawsuit focuses on alleged violations of the Independence City Charter and the Missouri Sunshine Law during the approval process for the data center, particularly concerning transparency, public records, and open meetings. It challenges the city's decision to rezone the land for industrial use, arguing it should be classified as heavy industrial due to the project's scale, and disputes the legitimacy of over $6 billion in tax breaks and electricity funding mechanisms awarded to Nebius. Residents also cite noise, light pollution, environmental health concerns, and devaluation of homes as impacts.
Nebius, a Dutch AI services company, broke ground in May on the project, intended as its flagship U.S. location. The city of Independence maintains that all approvals and processes complied with applicable law, while Nebius declined to comment on specific allegations but affirmed commitment to compliance. This lawsuit is reportedly the third major legal action against data center projects in Missouri, with attorneys noting similar transparency issues in other cases.