Residents sue over secret OpenAI data center deal in Georgia

The Secret Land Deal

Residents of Effingham County have filed a lawsuit alleging that local elected officials and public employees conspired to secretly arrange a land sale to OpenAI. The plaintiffs, including Michelle Finch-Mincey, Lehman Mincey Jr., and Raymond Carver, claim the deal was kept hidden to prevent public opposition. They argue that the secrecy allowed the deal to move forward without the consent of the people who live in the area.

The lawsuit targets several high-ranking figures, including the members of the county commission and County Manager Tim Callanan. It also names the Effingham County Industrial Development Authority and its executive director, Brandt Herndon. Additionally, the suit includes a software company called Octans GA, which is a Georgia affiliate of OpenAI, as well as the firm Savannah Industrial Development LLC.

According to the legal filings, the plaintiffs are seeking punitive damages against these parties. They argue that the actions taken by these officials and entities constituted a conspiracy to benefit a multi-billion-dollar corporation. The residents believe that the secret nature of the negotiations spoiled land values for everyone else in the county.

Project Scale and Impact

The memorandum of understanding for the project outlines a massive investment plan for the region. OpenAI is expected to invest $4 billion into the area, creating 80 jobs during each of the five construction phases. These phases are scheduled to take place between the years 2028 and 2034. Even with a discounted tax rate, the project is projected to make OpenAI the largest taxpayer in the county.

However, the scale of the data center brings significant environmental and infrastructure concerns for the state of Georgia. The facility would become the biggest electricity user in the state, requiring power from a grid fueled by nuclear and fossil fuels. It would also demand massive amounts of water to keep the power plants running effectively.

The lawsuit highlights that while the tax revenue is substantial, the resource demands are equally large. The residents are concerned about how these demands will affect local resources and the surrounding environment. The project represents a major shift in the county's industrial landscape, moving it toward high-intensity tech infrastructure.

Timeline of Secret Meetings

The lawsuit details a timeline of events that suggest the deal was being coordinated behind closed doors for months. Evidence shows that Brandt Herndon was aware of OpenAI's interest in the county as far back as October 27, 2025. This was documented by a nondisclosure agreement signed by both parties at that time.

By February 2026, other local officials had reportedly received briefings regarding OpenAI's plans. In April, the development authority hired extra public relations help to manage the project. By May 14, a company with the power of attorney for the development authority signed an agreement to sell publicly owned land to OpenAI's affiliate.

The public was largely unaware of these developments until the deal was made public in July. The only information available to the community was a December county commission vote on zoning rules. One of those rules allowed for data centers in industrial areas by default, but the specific OpenAI deal was not disclosed.

Legal Strategy and Allegations

The plaintiffs' attorney, Greg Gilluly, describes the negotiations as a form of civil racketeering. He argues that the officials conspired to keep the process secret until public objection could no longer change the outcome. The lawsuit claims that government power should come from the consent of the people rather than secret meetings with corporations.

This is not the first legal challenge regarding OpenAI's arrival in Effingham County. In early September, the same group of plaintiffs sued the county to invalidate the data center zoning. They also joined forces with an environmental group called One Hundred Miles to try to throw out the development authority's deals with the software company's affiliate.

The Effingham County Board of Commissioners has declined to comment on any ongoing litigation. Meanwhile, the development authority and OpenAI have not provided comments to the press. The legal battle now moves to the Effingham County State Court to determine if the actions taken by officials were illegal.