Residents near Birmingham’s Oxmoor Valley area have sued Nebius and the City of Birmingham over a proposed AI data center campus, arguing the project violates zoning rules and threatens nearby neighborhoods with noise, pollution and falling property values.
The class-action lawsuit, filed May 13 in Jefferson County Circuit Court, seeks to stop construction of the planned “Birmingham AI Factory,” a 300-megawatt AI computing campus proposed near Milan Parkway and Venice Road.
Plaintiffs Madelyn Greene and David Butler, who live near the site, claim the city allowed the project to move forward without required zoning approvals or public hearings. They argue the site’s mixed-use zoning does not allow a hyperscale AI facility and say permits tied to the project should be voided.
The complaint also argues Nebius lost any “grandfathered” development rights when the former Regions Bank operations center on the property was demolished.
At the center of the dispute is a proposed power substation and switching station tied to the project. The lawsuit says both facilities required special approval from Birmingham’s Zoning Board of Adjustment and notes the applications failed to receive enough votes for approval during a March zoning meeting.
That March meeting drew strong opposition from Oxmoor Valley residents concerned about environmental impacts and home values.
“We don’t want this in our neighborhood,” Joey Amberson, president of the Oxmoor Glen subdivision, said at the time. “It’s not good for our area.”
Nebius defended the project following the meeting, saying it would benefit Birmingham and the surrounding community.
The lawsuit also challenges an internal memo allegedly issued by Birmingham’s city attorney stating that the facilities did not qualify as utility substations under city code. Plaintiffs argue the memo improperly attempted to override the zoning board’s action.
The lawsuit says demolition and grading work are already underway and notes the city issued a roughly $7 million permit tied to the project. Plaintiffs are asking the court to stop further work and award damages tied to property values and quality of life.
“To my knowledge, we have not been served,” the city’s Office of Public Information said in a statement. “Regarding lawsuits, the city does not discuss pending legislation.”
