Franklin Coalition sues Data Center Developers, challenges approval process
FRANKLIN, Ky. (WNKY) – A local citizens group has filed a lawsuit challenging a controversial data center project in Franklin, marking the latest legal battle over the proposed development.
In a complaint filed in Simpson Circuit Court, Franklin Citizens for Responsible Development, Inc. is suing multiple developers tied to the project, along with the City of Franklin Planning and Zoning Commission. The lawsuit seeks to overturn approval of a preliminary development plan for a large-scale data storage and power generation facility known as “Project Lionsgate/Blackjack.”
The proposed development, planned for roughly 147 acres on Steele Road, includes multiple data center buildings and an on-site power generation facility intended to supply energy for operations.
The group argues the planning commission acted improperly when it approved the project in March, claiming the decision was “arbitrary, capricious, and contrary to law.”
The lawsuit alleges the commission treated the development as a permitted use under local zoning rules despite previously indicating such a project should require a conditional-use review.
According to the filing, the commission had rejected a proposed zoning text amendment in 2025 that would have explicitly allowed data centers and associated power generation in the area.
Despite that earlier stance, the lawsuit claims the commission later approved the project without changes to the ordinance or sufficient explanation.
The plaintiffs also raise concerns about potential impacts on nearby businesses and residents, including noise, odors and other disruptions tied to the facility’s size and power generation components.
In addition, the lawsuit alleges some developers involved in the project, including OTN Development Company and TenKey LandCo, may not be properly authorized to conduct business in Kentucky, calling into question the legality of the application process.
The group is asking the court to void the planning commission’s approval, declare the project inconsistent with local zoning laws, and issue an injunction halting further progress.
This marks the second major lawsuit tied to the project, which has drawn significant public attention and debate in the community over economic development and potential environmental and infrastructure impacts.
