Class-Action Nuisance Suits Open New Front Against Operating Data Centers
Wisconsin resident Garret Ostergaard filed a class-action lawsuit in federal court against Microsoft over noise from the company’s 1.2 million-square-foot Fairwater data center in Sturtevant, Wisconsin. Ostergaard changed work shifts because constant equipment noise disrupted his sleep. The suit seeks class-action status for more than 1,000 households and damages exceeding $5 million. The Business Journals identified six such class-action suits filed in 2026, five focused on noise complaints, with four still active.
Opponents are adapting a litigation strategy historically used against manufacturing and agricultural operations to target data centers already in operation. Pat Fanning, a trial attorney at Lathrop GPM, said residents who failed to stop projects through zoning battles are now filing nuisance suits based on English common law. The suits claim operators damage residents’ property enjoyment through noise, smell, or pollution. Plaintiffs can seek monetary damages or, rarely, court orders to halt operations. WilmerHale noted that no data center noise case has reached trial or judgment, though some have settled.
The litigation wave coincides with a $1 trillion build-out driven by artificial intelligence demand and growing political resistance. More than 100 state and local governments have moved to ban, pause, or restrict large AI data center projects. New York Governor Kathy Hochul placed a moratorium on larger facilities, and Texas Governor Greg Abbott paused new approvals. Heatmap Pro reported that 25 data center projects were canceled in 2025, four times the 2024 total, while 99 of 770 planned projects face local opposition.
Fanning described the suits as a “Damocles sword” for developers, with successful class actions likely to spur more filings. He said data centers have become a bipartisan issue, with opposition stemming from environmental, political, and quality-of-life concerns. Developers can improve their legal position by monitoring sound levels, following local ordinances, and taking mitigation steps to demonstrate reasonable conduct. About 200 data center projects remain under construction despite the legal and regulatory headwinds.
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