Data center developments face legal challenges in Illinois and Wisconsin

Legal challenges regarding the development of large-scale data centers are progressing in two separate U.S. jurisdictions.

In Illinois, the Sangamon County Board is defending its April approval of the county’s first hyperscale data center. The project, slated for 280 acres of farmland, faces a lawsuit from local residents and a business owner who claim the approval process contained procedural errors and could negatively impact nearby farms and residences. A hearing regarding a motion to dismiss the case is scheduled for October 9.

In Wisconsin, an Ozaukee County judge dismissed a lawsuit brought by Great Lakes Neighbors United. The community group had challenged the creation of a tax incremental district (TID) intended to fund approximately $175 million in infrastructure for a $15 billion data center campus in Port Washington. The project involves Vantage Data Centers, OpenAI, and Oracle. While the judge's ruling may dismiss the case with prejudice, community organizers stated that the decision does not resolve their concerns regarding the transparency of the district's administration.