Judge releases shell company from suit over Birmingham data center
A Jefferson County judge dismissed Lakeshore Data Center, LLC, from residents’ lawsuit challenging construction of Nebius’ data center in Birmingham’s Oxmoor Valley. The judge also dismissed three claims but allowed the residents’ main challenges to proceed toward a March trial alleging the city illegally issued permits.
Jefferson County Circuit Court Judge Javan Patton Crayton dismissed Lakeshore Data Center, LLC, from a lawsuit brought by Birmingham residents seeking to stop construction of Nebius’ data center in the Oxmoor Valley neighborhood. Lakeshore was involved in a series of land transactions that increased the site’s price by $66 million before the company dissolved in December 2025. The judge also dismissed three of eight claims against the remaining defendants, including Hoar Construction, which is building the facility for Nebius.
The residents’ attorneys argued that Lakeshore and Hoar may have acted together in a civil conspiracy, while Lakeshore’s attorney said the company could not be liable for zoning decisions or future construction nuisances. The lawsuit’s central claims remain active and are scheduled for trial in March. Residents allege Birmingham illegally granted permits for the 80-acre data center site near homes and a school; claims involving city-approved data center regulations, technical-code violations and potential future noise, heat and nuisance impacts were dismissed, with one nuisance claim dismissed without prejudice.