An Alabama animal shelter is taking on a massive AI data center project in court

3 hours ago 3

A rendering of Nebius' data center in Birmingham.

A rendering of Nebius' data center project in Birmingham. Nebius

An Alabama animal shelter is barking back against a massive AI data center that's under construction next to its planned veterinary hospital campus in Birmingham.

The Greater Birmingham Humane Society filed a lawsuit earlier this month in a bid to block the project, alleging that the city of Birmingham, AL, and developers engaged in a "months-long scheme" to greenlight it by sidestepping zoning rules.

The lawsuit, filed in Jefferson County Circuit Court, says that the four-month review for building permits for the more than $2 billion facility moved at "lightning speed" compared with the 18-month review for the nonprofits' planned $67 million campus.

Entities of Nebius Group, the Amsterdam-headquartered AI infrastructure company behind the data center project, "coordinated" with the city to "abuse legal processes and manipulate timelines to fast-track a favored project without due process, regard for the law, or public welfare," the lawsuit alleges.

A Nebius spokesperson told Business Insider that the project was "permitted lawfully in this commercial district and Nebius has followed the same rules that apply to everyone else in Birmingham."

"The facility has also been thoughtfully designed and responsibly developed with measures including acoustical sound walls, grid power, and closed-loop cooling, among other areas," the spokesperson said.

A spokesperson for the city of Birmingham said the city does not comment on ongoing litigation.

The humane society's lawsuit says that the organization previously notified the city and its zoning board that the data center project "could deprive" it "of the planned use of its property because of noise that may interfere with its operations and be harmful to animals and humans."

The data center is being built about 160 feet from the property line of GBHS's future animal welfare campus, which is expected to include an adoption center, outdoor rehabilitation areas, and foster facilities, the nonprofit said.

"This case is not about whether data centers should exist," Allison Black Cornelius, the president and CEO of the GBHS, said in a statement. "It is about whether a project of this size and character should move forward in this location without the legal questions surrounding its approval first being resolved."

Cornelius added, "We believe neighboring institutions, nonprofit organizations, residents, and the broader community deserve confidence that the applicable laws and procedures have been followed."

Nebius' data center has also drawn separate legal action from area residents, according to local media reports.

The pushback comes amid growing community opposition to AI data center projects nationwide, driven by concerns about their environmental and economic impacts.

According to the research project Data Center Watch, at least 75 data center proposals worth an estimated $130 billion were delayed or blocked during the first three months of 2026 because of local opposition.

As of May, there were at least 430 local Facebook groups with more than 525,000 members fighting back against AI data centers, according to the Data Center Opposition Report, which tracks local opposition to the projects.

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Natalie is a senior reporter on Business Insider's Business News team.She was previously on BI's Legal Affairs team where she covered major cases out of state and federal court, as well as bankruptcy. Her coverage often focused on stories at the intersection of law, business, politics and technology. Natalie has covered Donald Trump’s criminal and civil cases, the wave of lawsuits against the second Trump administration, the indictment and criminal trial of Sean “Diddy” Combs, the shooting death of UnitedHealthcare CEO Brian Thompson, and the legal battles facing Elon Musk and his companies. Natalie came to Business Insider in June 2021 as a breaking news reporter, focusing on the most interesting angles around the trending news of the day. Natalie largely drove BI’s coverage around the fatal “Rust” shooting involving Alec Baldwin and the disappearance and murder of Gabby Petito.Prior to joining BI, Natalie worked for the New York Post, the New York Daily News, and The Brooklyn Paper. She has an extensive background covering crime and courts. During her more than 12-year journalism career, she did a stint covering the police beat out of the headquarters for the New York Police Department. Natalie, a Brooklyn native, graduated from Brooklyn College in 2012 with a journalism degree. Popular articles

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