Lawsuits against data centers are multiplying as artificial intelligence infrastructure spreads across the United States, and the claims fall into a handful of recurring categories: noise nuisance, Clean Air Act violations, inadequate environmental review, zoning and moratorium disputes, water depletion, and challenges to federal orders keeping coal plants running to feed the grid. As of mid-2026, dozens of cases are active in state and federal courts, and roughly $64 billion worth of projects were blocked or delayed in 2025 alone because of local resistance.1National Wildlife Federation. The AI Data Center Boom Is an Environmental Justice Crisis Some suits have already forced settlements worth tens of millions of dollars; others have halted construction outright.
Noise Nuisance Claims From Neighbors
Cooling systems, diesel generators, and HVAC equipment at data centers produce a constant low-frequency hum, and residents living nearby are turning that complaint into class actions.
On May 26, 2026, Scott Montgomery and Michael Gentile filed a class-action suit in the U.S. District Court for the District of New Jersey against DataOne USA, which operates a facility at 3963 South Lincoln Avenue in Vineland. The complaint describes an “annoying industrial humming noise” from generators and cooling equipment that interferes with sleep, causes anxiety, and cuts property values. The proposed class covers residential owner-occupants and renters within one mile of the facility — roughly 1,013 households.2ClassAction.org. Montgomery et al v. DataOne USA LLC The suit followed a March 10, 2026 Notice of Violation from the Cumberland County Department of Health finding the facility exceeded New Jersey’s 50-decibel nighttime noise limit between 10 p.m. and 7 a.m.3NJ.com. This Nonstop Humming Coming From an AI Data Center Has Pushed NJ Neighbors to Sue Plaintiffs bring claims for private nuisance, public nuisance, and negligence, with an aggregate amount in controversy over $5 million. Chief Judge Renée Marie Bumb issued an order requiring plaintiffs to show cause why the case should not be dismissed for lack of subject matter jurisdiction, with a response due June 22, 2026.4PACER Monitor. Montgomery et al v. DataOne USA LLC
A parallel class action is pending in Mississippi District Court. Three DeSoto County residents sued Elon Musk’s AI company xAI, alleging gas turbines powering the “Colossus” data center complex in Southaven have produced near-constant noise and vibrations since mid-2025. They seek compensatory damages for mental anguish and loss of property enjoyment, plus punitive damages for what the complaint calls “malicious” and “reckless” conduct.5PCMag. Mississippi Residents Sue xAI Over Near-Constant Noise From Data Centers
Clean Air Act and Air Permit Challenges
Air pollution suits have become one of the sharpest tools against data center construction, particularly where facilities rely on on-site generators or gas turbines.
In April 2026, the NAACP sued xAI and its subsidiary MZX Tech under the federal Clean Air Act, alleging the company operates dozens of unpermitted gas turbines at the Colossus site in Southaven and that the emissions burden a predominantly Black community.6NAACP. Stop Dirty Data Centers By mid-April, the count of turbines had grown from 33 to 46. The NAACP filed for a preliminary injunction on May 6, 2026, citing the addition of six new units and the potential for toxic emissions.7Earthjustice. NAACP Asks Court for Emergency Action to Stop Illegal Air Pollution From xAI’s Data Center Power Plant A hearing on the injunction and a motion to dismiss is scheduled for August 2026, and the U.S. government filed a notice on May 13, 2026, indicating potential intervention in support of xAI.8Tech Policy Press. Environmental Lawsuits Present Roadblock for the AI Data Center Boom
In Massachusetts, ten Lowell residents organized as “Honest Future for Lowell” sued the state Department of Environmental Protection (MassDEP) and Markley Group in Middlesex County Superior Court in late April 2026.9Yale Law School. Clinic Lawsuit Challenges Data Center Expansion in Lowell, Massachusetts Markley owns a 352,000-square-foot data center in the city, and the challenged air permit would allow eight additional diesel generators, bringing the facility to 27 generators and 16 cooling towers.10Commonwealth Beacon. Lowell Residents Sue Data Center, State Over Air Quality Permit The complaint alleges that MassDEP and Markley entered a secret administrative consent order in September 2025 that let the company install equipment while the residents’ permit appeal was still pending.11Conservation Law Foundation. Lowell Residents File Lawsuit Challenging Data Center Expansion Plaintiffs are asking the court to vacate the agency’s approval and block the consent order.
Environmental Review Challenges
Where state law requires an environmental impact review, plaintiffs are arguing that developers and municipalities cut corners.
In October 2025, the Minnesota Center for Environmental Advocacy sued the city of Pine Island and developer Ryan Companies in Goodhue County District Court over “Project Skyway,” a 482-acre hyperscale data center intended for Google. MCEA argues that the “alternative urban areawide review” the city used is inadequate for a facility of this scale and that a full environmental impact statement is required.12Post-Bulletin. Data Center Case Hearing Will Set the Stage for Next Steps On May 22, 2026, Judge Patrick Biren issued a temporary restraining order halting all construction and pre-construction activity, blocking a planned July 2026 construction start.13MPR News. Pine Island Hyperscale Data Center Construction Halted by Judge The order could remain in place for months.
California has produced a mixed record under the California Environmental Quality Act (CEQA). The Center for Biological Diversity’s suit challenging a Pittsburg data center and warehouse project settled in December 2025, with developers committing to use exclusively renewable energy and recycled water for server cooling.14Columbia Law School. Data Center Litigation: An Emerging Frontier for Climate Litigation The City of Imperial’s CEQA writ against Imperial County over a proposed $10 billion facility went the other direction: in February 2026, the Imperial County Superior Court ruled the complaint “legally insufficient,” though it granted leave to amend, and the city filed an amended petition on March 11, 2026.15Calexico Chronicle. Court: Imperial’s CEQA Claims Are Insufficient to Challenge Data Center Meanwhile, project developer Sebastian Rucci, owner of Imperial Valley Computer Manufacturing, filed a civil rights suit in January 2026 in the Southern District of California against the city, alleging “administrative obstruction” and “targeted retaliation” that cost more than 1,600 construction jobs.16iNewsource. Data Center Developer Imperial County
Zoning Denials and Moratorium Fights
When local governments say no, developers are quick to sue, and the results so far tilt in their favor.
Saline Township, Michigan, illustrates how fast a zoning fight can flip. On September 10, 2025, the township board voted 4–1 to deny rezoning of roughly 575 acres of farmland for a $7 billion Oracle and OpenAI data center, calling the proposal “inconsistent with the master plan.”17GovTech. Michigan Township Defends Decision on OpenAI Data Center Two days later, developer Related Digital and several property owners sued, alleging “exclusionary zoning” that violated the Michigan Constitution and the state Zoning Enabling Act. A consent judgment filed on October 15, 2025 let the project proceed. Related Digital agreed to contribute $14 million to the township and local fire departments, fund a $4 million farmland preservation trust and a $2 million community investment fund, accept a 55-decibel noise limit, place 47.5 acres of wetlands in a conservation easement, and forgo local water for cooling.18Planet Detroit. Saline Data Center Settlement The township’s attorney cited a high likelihood of losing at trial and potential damages of about $25 million.
Resident Kathryn Haushalter tried to intervene. On February 20, 2026, Washtenaw County Circuit Court Judge Julia Owdziej denied the motion as untimely, ruling that by-right intervention is not available in a closed case, and rejected an Open Meetings Act claim after video confirmed the board voted in open session. A separate mandamus complaint Haushalter filed on January 28, 2026, alleging the Zoning Board of Appeals skipped required permit hearings, remains pending.19Planet Detroit. Judge Denies Data Center Intervention
Blanket moratoriums have fared even worse. When Hill County, Texas, passed a moratorium on data center construction, developer RCM Hill LLC filed a $100 million suit on May 27, 2026 in the Western District of Texas against the county, County Judge Shane Brassell, and Commissioners Jim Holcomb and Larry Crumpton.20Texas Tribune. Texas Hill County Moratorium Rescinded Data Centers RCM Hill, developing a 1,235-megawatt facility called “Project Aquila” near Hillsboro, alleged the moratorium was a regulatory taking under the Fifth and Fourteenth Amendments, violated federal civil rights law, and was void under state law. The company said the moratorium jeopardized its ERCOT planning eligibility and disrupted investor relations. On June 4, 2026, the Hill County Commissioners Court voted unanimously to rescind the moratorium, citing liability risk, and replaced it with new oversight requirements covering water, traffic, noise, and economic impacts. The lawsuit itself remains active, with RCM Hill arguing it suffered damages the moment the moratorium was adopted.21KERA News. Hill County Drops Data Center Moratorium After Lawsuit, Adopts New Review Requirements
Water and Endangered Species Claims
Water consumption is a growing pressure point. In The Dalles, Oregon, the city fought a 13-month legal battle to keep Google’s water records secret as trade information. Google paid $100,000 as part of the proceedings, and the numbers came out: the facility used 355.1 million gallons in 2021.22Stanford. Thirsty for Power and Water: AI-Crunching Data Centers Sprout Across the West
In Alabama, opponents of “Project Marvel,” a proposed $14.5 billion hyperscale data center in Bessemer that would require at least two million gallons of water per day, are trying a different route.23Alabama Rivers Alliance. Endangered Species Act Petition Filed to Protect Imperiled Fish Threatened by Alabama Data Center Development In November 2025, the Center for Biological Diversity, the Alabama Rivers Alliance, Black Warrior Riverkeeper, and The People’s Justice Council filed a petition with the U.S. Fish and Wildlife Service to list the Birmingham darter — a small fish found in streams at the project site’s headwaters — as threatened or endangered. Fish and Wildlife has 90 days from filing to issue an initial finding, and no formal court case has been filed yet.24Alabama Reflector. New Obstacles for Proposed Bessemer Data Center: The Northern Beltline and a Fish
Challenges to Federal Coal Plant Extensions
The Trump administration issued Executive Order No. 14318 in July 2025 to expedite permitting for energy resources supporting data centers, and the Department of Energy has invoked Section 202(c) of the Federal Power Act to keep aging coal-fired plants running to meet AI demand. Both moves are in court.
A coalition including NRDC, PennFuture, the Clean Air Task Force, the Environmental Defense Fund, and the Sierra Club petitioned the D.C. Circuit in September 2025 to review the DOE emergency order keeping the Eddystone Generating Station in Pennsylvania online. The petitioners filed their opening brief on May 8, 2026, and no ruling has issued.25State Power Project. Challenges to DOE 202(c) Orders
Earthjustice and the Sierra Club are challenging similar orders that have kept Michigan’s J.H. Campbell plant operating past its May 2025 retirement date. The order has been reissued four times, and Consumers Energy, the plant’s owner, says it costs over $600,000 per day to run. Oral arguments were held in the D.C. Circuit on May 15, 2026. Challengers argue there is no genuine emergency, pointing to a MISO capacity auction that showed 5.6 GW of new regional capacity, more than half from solar.26Earthjustice. Sierra Club and Earthjustice Argue Against Illegal Coal Plant Extensions in Court
What the Early Rulings Suggest
The record so far shows courts willing to pause construction on procedural grounds and communities willing to extract concessions once they file, but also developers winning fast when local governments overreach. Pine Island’s construction is on hold. Saline Township paid its price in millions of dollars of commitments and a binding noise cap rather than a courtroom loss. Hill County dropped its moratorium within days of being sued. Noise class actions and Clean Air Act suits are moving toward decisive hearings in 2026, and the federal coal-plant challenges will test how far emergency energy authority can stretch to serve AI infrastructure. As attorney Stuart Lieberman put it: “Nobody wants them, and yet everybody wants to use ChatGPT.”27Law.com. Legal Battles Shaping Over Data Centers: Here’s What to Expect