Data centres are facing a significant increase in climate-related legal cases globally, according to a new report from the Environmental Justice Foundation. The report, released on Thursday, identifies 34 legal cases filed since 2020 that target data centre operations, including challenges to permits, claims of misleading environmental claims, and disputes over water and energy use.
Rise in Legal Challenges
The report notes that the number of cases has risen sharply in the past two years, with 22 cases filed in 2025 alone. This marks a 180% increase compared to the previous year. The cases span jurisdictions including the United States, Europe, and Australia, reflecting a global trend of increased scrutiny on the industry's environmental impact.
“Data centres are becoming a focal point for climate litigation as their energy and water consumption grows,” said Dr. Emily Jones, lead author of the report. “Communities and environmental groups are increasingly using legal avenues to hold operators accountable for their carbon footprint and resource use.”
Key Drivers of Litigation
The report identifies several key drivers behind the surge in cases. First, the rapid expansion of data centres to meet demand for cloud computing and artificial intelligence has led to increased energy consumption, often from fossil fuel sources. Second, water usage for cooling systems in water-stressed regions has sparked local opposition. Third, allegations of greenwashing – where companies make misleading claims about their environmental credentials – have prompted legal action.
In one notable case, a coalition of environmental groups in the Netherlands filed a lawsuit against a major tech company in 2024, arguing that its data centre's energy use violated national climate targets. The case is ongoing. In the United States, a community group in Virginia successfully challenged a data centre's permit in 2023, citing inadequate assessment of its water use during a drought.
Impact on the Industry
The legal challenges are having tangible impacts on the data centre industry. Several companies have delayed or cancelled expansion plans due to legal uncertainty. The report estimates that the industry could face billions of dollars in compliance costs and potential damages if the trend continues.
“This is a wake-up call for the sector,” said James Carter, a technology analyst at GreenTech Insights. “Data centre operators need to proactively address their environmental impact, not just to avoid litigation but to secure their social license to operate.”
Recommendations
The report recommends that data centre operators adopt transparent reporting of energy and water use, invest in renewable energy and efficient cooling technologies, and engage with local communities early in the planning process. It also calls for stronger regulatory frameworks to ensure that data centres contribute to climate goals rather than undermine them.
“The era of unchecked data centre expansion is over,” Dr. Jones concluded. “Legal accountability is here, and it's only going to intensify.”
