Action picks up in lawsuits targeting Birmingham data center
Legal action is intensifying against a hyperscale data center project in Birmingham's Oxmoor Valley, with two new lawsuits filed and three existing ones consolidated. The lawsuits challenge the city's permit grants, land sales, and a significant tax abatement, with the next court hearing scheduled for March 8.
Legal challenges are escalating for a hyperscale data center project under construction in Birmingham's Oxmoor Valley. Two new lawsuits were filed last week, and three existing suits have been consolidated by Jefferson County Circuit Court Judge Javan Patton Crayton, who has set the next hearing for March 8.
The consolidated lawsuits, filed by residents and the Greater Birmingham Humane Society, allege the city of Birmingham illegally granted permits for the data center in a mixed-use zoning district and seek a permanent halt to the project. Defendants include data-center developer Nebius, the city of Birmingham, and Hoar Construction.
Separately, a Regions Financial shareholder, James Anderson, filed a new lawsuit alleging three land transactions on the same day improperly inflated the property's price by $66 million. He claims Regions executives acted negligently and that Nebius and other involved companies concealed a pre-arranged resale deal. Another lawsuit, filed by resident Terri Michal, targets the Birmingham Industrial Development Board for allegedly holding an illegal special meeting to award a 30-year, $3.2 billion tax abatement to Nebius, claiming inadequate public notice and exceeding authority. Despite the legal battles, construction at the 80-acre site continues six days a week, with completion slated for 2028.