Why Data Center Development Is Facing a Legal Reckoning

Opposition to data center development is escalating across the country, with over $64 billion in projects blocked or delayed and more than 140 activist groups forming to resist them. Data center developers are increasingly turning to litigation, particularly defamation lawsuits, as a strategy to combat what they characterize as misinformation spread by opponents. Defamation law can target false statements of fact, such as claims that data centers do not pay taxes or emit dangerous radiation, though it cannot be used against subjective opinions. Anti-SLAPP laws in many states create additional legal complexities by requiring developers to prove falsity and malice early in lawsuits, potentially resulting in costly dismissals and attorney fee awards against developers who lack sufficient evidence.