A federal judge on Tuesday dismissed the lawsuit filed by an artificial intelligence (AI) data center developer whose plans to build near the Nashville Zoo prompted Metro Nashville to impose new restrictions on data centers and pursue a plan to acquire the company’s property through eminent domain. The company sued over the moratorium.
U.S. District Judge Eli Richardson (pictured above), who was appointed by President Donald Trump, dismissed the lawsuit filed in August by DC BLOX in a 3-page decision. It was filed alongside a 50-page memorandum that said the company’s lawsuit failed to explain how a federal court should address the situation, and explained his decision to allow the plaintiff 21 days to file with amended claims.
DC BLOX argued in its lawsuit that Metro Nashville violated its constitutional rights by imposing the moratorium after the company acquired the property, unfairly singled it out by freezing its permit applications while approving permits for another data center developer, and deprived it of property rights without due process.
The company also argued that the moratorium amounted to an unconstitutional taking under the Fifth Amendment.
“In summary, the Court is entirely unclear as to what particular property interest(s) Plaintiff bases this action on generally or counts I, III, and IV specifically,” wrote Richardson in his memorandum. “This is no mere technical defect.”
The judge wrote, “permitting Plaintiff to reassert these counts (if it can) in an amended complaint (rather than dismissing the entire action without prejudice and thereby relegating Plaintiff to filing an entirely new lawsuit), the Court is granting Plaintiff leniency that it is not required (though it is authorized) to grant.”
Richardson dismissed the company’s equal protection claim involving another data center developer, and declined to exercise jurisdiction over five additional claims seeking declarations concerning Tennessee law, dismissing those claims without prejudice.
The Tennessee Star contacted DC BLOX for comment, but did not receive an immediate response. The Nashville Business Journal has reported DC BLOX “says it isn’t backing down.”
Metro Nashville Councilmember Courtney Johnston (District 26) and Metro Legal Director Tyler Yarbro, who is the spouse of State Senator Jeff Yarbro (D-Nashville), have celebrated the dismissal.
“I am pleased with the ruling and remain confident that Metro has acted lawfully in its dealings with DC BLOX and in the enactment of the moratorium on data center permitting,” said Yarbro in a statement reported by The Nashville Scene.
Johnston similarly praised the decision in a post to Instagram.
“Every claim in DC BLOX’s federal lawsuit has now been dismissed, and its request for a preliminary injunction was denied as moot because there are currently no claims left before the court,” wrote Johnston.
The former Republican congressional candidate wrote, “I have said from the beginning that Metro has both the right and the responsibility to determine appropriate land uses through its legislative and zoning processes. DC BLOX had every right to challenge those decisions in court. They did. This was the result.”
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Tom Pappert is a 2025 recipient of the Dao Prize and the lead reporter for The Tennessee Star. He also reports for the Star News Network. Follow Tom on X. Email tips to [email protected].
