AI data company Nebius voluntarily drops lawsuit against Birmingham zoning board

AI data company Nebius voluntarily drops lawsuit against Birmingham zoning board

News ClipWBMA·Birmingham, Jefferson County, AL·5/30/2026

AI data company Nebius has voluntarily dropped its lawsuit against the Birmingham Zoning Board. The lawsuit stemmed from confusion and denial surrounding a special exception request for power infrastructure for a data center project. This development comes amidst ongoing community pushback against data center construction in Alabama.

zoningoppositionlegalelectricity
Gov: Birmingham Zoning Board

AI data company Nebius, which is planning to build a facility in Birmingham, Alabama, has voluntarily dismissed a lawsuit it filed against the city's Zoning Board. The legal action originated from a dispute over a special exception request for power infrastructure, which Nebius sought alongside a request from Alabama Power.

Initially, Nebius perceived a board vote of three in favor, one abstention, and one opposition as an approval. However, a city attorney later clarified that this outcome constituted a denial. During the same meeting, the zoning board also denied a separate special exception request from Nebius for a second power station. While court documents confirm the voluntary dismissal, Nebius has not provided a public explanation for its decision.

The broader context for this situation includes significant community opposition to AI data centers in Alabama, which has been described as a "hot button topic" for several months. Residents have actively pursued legal avenues to block construction, and there have been reports of police harassment related to these lawsuits, indicating ongoing and intense local engagement on the issue.