DC BLOX sued Metro Nashville Council over its attempt to block the company from developing a data center near the Nashville Zoo.
Metro has implemented zoning restrictions and a data center moratorium, and approved Mayor Freddie O’Connell’s use of eminent domain to seize the property DC BLOX purchased to convert into a data center.
In the lawsuit, the company says the property it bought, when it was previously used by a previous company, had data-center functions. Metro issued permits that referenced data-center operations to the previous owner, the lawsuit says.
The company says Tennessee law safeguards specific existing uses when zoning regulations change.
DC BLOX bought the property in November 2025 for approximately $23 million and has spent large sums of money on engineering, architecture, utility coordination, and environmental work, the lawsuit says, adding that the company closed on the property on July 16.
When DC BLOX applied to the City of Nashville for its zoning permits, the city told the company the data center was allowed because data centers were categorized as a general office or warehouse, the lawsuit notes.
In March, the city determined DC BLOX’s data center proposal qualified as a general office, but then, after it submitted the data center’s floor plans, the city changed the qualification to a warehouse with incidental general offices, which was still allowed, the lawsuit states.
According to the lawsuit, Nashville said the company’s building permit applications were vested under the state’s Vested Property Rights Act, which protects landowners from abrupt zoning changes.
DC BLOX argues its data center project does not apply to the new Nashville zoning restrictions because it had vested rights in the property before the regulations took effect.
With the city placing the company’s pending permits on delay, DC BLOX says it is causing problems with financing, carrying costs, and its competitive position, the lawsuit notes.
The company alleges the moratorium was crafted to stop its project.
The lawsuit claims Nashville continued to process permits related to another data center project after the moratorium went into effect.
DC BLOX is asking a judge to declare the city’s moratorium unconstitutional, that the property has protected pre-existing data-center use, and that the company has vested permitted rights.
The company is also requesting the judge rule that Nashville needs to continue issuing its permits, prevent Metro from using the moratorium to delay its appeal proceedings, and award compensatory damages.
DC BLOX filed the lawsuit in the U.S. District Court for the Middle District of Tennessee’s Nashville Division.
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Zachery Schmidt is the digital editor of The Star News Network. Email tips to Zachery at [email protected].
Photo “Nashville Zoo” by Michael Hicks. CC BY-NC-ND 2.0.
Sue the hell out of METRO – Freddie and his commie council and if possible make them look like bigger idiots than they are. Freddie has done nothing but cost Nashville money and this could cost millions $$$ ! It may have to go to the Tennessee Supreme court but, Freddie and his moron council followers will lose big time and regretfully so will city of Nashville $$$!
AI is the future. Freddie is the past! Fvck him and his eminent domain attempt
Way to go Freddie and council.