Lawsuit: Company behind Project MidSpan sues Bradley County over data center rules
SDCL Tennessee Propco LLC has filed a lawsuit against Bradley County, Tennessee, challenging newly adopted zoning rules that restrict data center development. The company claims it purchased a 306-acre property for Project MidSpan for nearly $20 million based on previous zoning guidance, only for the county to change regulations effectively prohibiting its planned data center. SDCL is seeking to invalidate the new restrictions.
SDCL Tennessee Propco LLC, identified as the developer behind "Project MidSpan," has filed a lawsuit against Bradley County, Tennessee, challenging recent zoning changes that impede its plans for a large-scale data center. The Delaware company, with its principal place of business in New York, alleges it paid nearly $20 million for approximately 306 acres in the Hiwassee River Industrial Park, near Walker Valley High School, based on prior assurances that the I-1 General Industrial zoning was appropriate for a data center. The lawsuit was filed in Chancery Court on September 17.
Bradley County Mayor Gary Davis publicly acknowledged the lawsuit and Project MidSpan on Monday. SDCL claims that after its April 28, 2025, land purchase, Bradley County commissioners voted 14-0 on April 20 to enact new rules. These rules restrict data centers to the I-2 Special Impact Industrial District and prohibit them within 3,000 feet of existing homes, schools, or churches. Project MidSpan's nearest proposed building would be about 1,700 feet from Walker Valley High School, making development impossible under the new regulations.
The lawsuit argues the new restrictions are arbitrary, discriminatory, violate equal protection and due process, and were improperly adopted under Tennessee's Open Meetings Act. SDCL contends the approved version differed materially from what the Bradley County Regional Planning Commission reviewed and lacked proper public notice. The company seeks to have the April data center restrictions declared invalid and unenforced against its property, along with legal costs and attorneys' fees. Mayor Davis stated Bradley County intends to defend its regulations, asserting they acted in response to citizen concerns.