Hearing Held in Simpson Data Center Lawsuit

Legal challenges related to proposed data center project come before judge for first time

Mar. 18, 2026 at 11:00am

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A status conference was held in Simpson Circuit Court regarding a lawsuit brought by TenKey LandCo I LLC, the company that owns the land in Franklin, Kentucky where a proposed data center would be built. The lawsuit concerns an ordinance passed by Simpson County Fiscal Court that would require any data center operation within the county to obtain a conditional use permit, which TenKey argues the county government has overstepped its authority in attempting to regulate.

Why it matters

The outcome of this lawsuit could have significant implications for the development of the proposed data center project, as well as set precedent for how local governments can regulate data center operations within their jurisdictions.

The details

TenKey's project visualizes three large data center facilities built on about 200 acres on Steele Road, dedicated to cloud-based data storage and infrastructure. The Franklin Planning and Zoning Commission recently approved a preliminary development plan, but the lawsuit concerns the fiscal court ordinance. TenKey has sued the fiscal court, arguing the county is overstepping its authority. The fiscal court has contended that TenKey has not suffered an injury, and has requested the proceedings be placed on hold while the county planning and zoning board considers amending its regulations. TenKey has argued this would cause financial hardship as it continues the research and permitting process.

  • A status conference took place on Monday, March 17, 2026 in Simpson Circuit Court.
  • The Simpson County Planning and Zoning Commission is likely to complete the process of amending its land use regulations by the end of May 2026.

The players

TenKey LandCo I LLC

The company that owns the land in Franklin, Kentucky where the proposed data center would be built.

Simpson County Fiscal Court

The county government that passed an ordinance requiring any data center operation within the county to obtain a conditional use permit.

Kathryn Eckert

An attorney representing TenKey LandCo I LLC in the lawsuit.

Aaron Smith

An attorney representing the Simpson County Fiscal Court.

Mark Thurmond

The Simpson Circuit Court judge presiding over the case.

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What they’re saying

“It's not the same level of dispute, not the same transaction.”

— Aaron Smith, Attorney representing Simpson County Fiscal Court

“Staying the proceedings would result in a financial hardship for TenKey as it continues the research and permitting process ahead of the presentation of a final development plan.”

— Kathryn Eckert, Attorney representing TenKey LandCo I LLC

What’s next

Judge Mark Thurmond set a March 27 deadline for Kathryn Eckert to reply to Aaron Smith's response regarding the motion to disqualify the ELPO attorneys, and declined to rule on the motion to stay the proceedings on Monday, saying he would research the issue thoroughly. Another status conference has been set for April 13.

The takeaway

This legal battle over the proposed data center project highlights the complex regulatory environment surrounding the development of large-scale technology infrastructure, and the potential for conflicts between local governments and private companies over the scope of their respective authorities.