OpenAI Hit with Racketeering Lawsuit Over Georgia Data Center Plan

A group of Effingham County residents has filed a state racketeering and conspiracy lawsuit against OpenAI, local government officials, and development authorities, alleging a coordinated effort to push through a massive data center project behind closed doors. The complaint, filed November 6 in Effingham County State Court, is the third legal challenge since the plan became public in July. The first suit, filed in early September, challenged the county's zoning decision. A second lawsuit later that month targeted the development authority's agreements with OpenAI's affiliate. This third suit names OpenAI directly [3][5].

The Project and the Complaint

Project Camellia is a proposed data center campus on roughly 1,440 acres at the Savannah Gateway Industrial Hub. According to the complaint and development agreement, the development contemplates more than 4 million square feet of buildings, approximately 3.2 gigawatts of power capacity, and a cumulative capital investment of about $20 billion across five construction phases from 2028 to 2034 [4][5]. OpenAI would create 80 jobs per phase and generate an estimated $870 million in tax revenue over 15 years under a payment-in-lieu-of-taxes arrangement, making it the county's largest taxpayer even at the discounted rate [3][5]. An earlier report cited a $4 billion investment figure from the memorandum of understanding [3]; the complaint cites $20 billion [4][5].

The plaintiffs—Dr. Michelle Finch-Mincey, Lehman Mincey Jr., and Raymond Carver—allege that the Effingham County Industrial Development Authority (IDA), county commissioners, County Manager Tim Callanan, IDA Executive Director Brandt Herndon, and private entities including OpenAI's Georgia affiliate Octans GA and Savannah Industrial Development LLC engaged in a "concerted effort to keep the massive, multi-billion dollar Project Camellia, the land transaction, and its terms secret from the people of Effingham County until the land was committed and the decisions were essentially made behind closed doors" [1][2].

Alleged Pattern of Secrecy

The complaint traces negotiations to an October 27, 2025 nondisclosure agreement between the IDA and OpenAI, signed by Herndon and OpenAI's Dan Cook—nearly nine months before public announcement [3][5]. By February 2026, other officials had received OpenAI briefings. In April, the IDA retained additional public relations help. On May 14, Savannah Industrial Development, acting under a 2016 power of attorney from the IDA, signed a land purchase agreement with Octans. A second agreement followed July 7—both before the IDA board met to consider the project [3][4][5].

The IDA held a special meeting July 21, which the lawsuit alleges was scheduled at OpenAI's request rather than on the regular calendar. The agenda listed only "Project Gateway." Three OpenAI representatives attended; no members of the public did. The board spent more than an hour in executive session before unanimously approving the MOU [5]. The project was announced publicly the next day [4].

On July 24, Savannah Industrial Development conveyed approximately 1,440.66 acres to Octans for $10, though Herndon has stated the sale increased public funds by $350 million [5].

Zoning Changes and Process Violations

The complaint also challenges an August 4 zoning amendment (Ordinance 2026-352) that county officials characterized as a technical correction. The plaintiffs contend it substantively changed where data centers could be built, permitting them by right on industrially zoned property and removing the conditional-use review that requires public hearings before both the Planning Board and Board of Commissioners under Georgia's Zoning Procedure Law and the local ordinance. No such hearings were held [4][5].

A steering committee created in December 2024 to address the zoning ordinance—composed of county development personnel, IDA members, private developers, and members of the public—met without public notice or agenda, and its meetings were not open to the public despite constituting a quorum of an appointed government entity [5].

Conflicts of Interest Alleged

The lawsuit adds a new dimension: County Commission Chairman Damon Rahn worked for Georgia Power as an information technology infrastructure analyst. Georgia Power representatives attended an October 2025 commissioners' retreat that addressed "strategic and economic impacts of data center development," and Georgia Power's economic development division facilitated OpenAI's introduction to the IDA. The complaint alleges Rahn neither disclosed his employment relationship nor recused himself during proceedings involving data centers and zoning amendments [5].

RICO Claims and Property Harm

The civil RICO count names OpenAI, Savannah Industrial Development, Herndon, Callanan, Rahn, and Commissioner Roger Burdette in their individual capacities. The plaintiffs allege a "Project Camellia Enterprise" formed to secure public land, favorable zoning, and tax incentives while concealing information from affected residents, involving a pattern of false statements, concealment of material facts, and coordinated governmental and private conduct [5].

The plaintiffs say the project has already harmed the use and marketability of their properties, with offers for nearby residential land falling or being withdrawn since the announcement. They seek compensatory and punitive damages, treble damages under the RICO claim, attorney's fees, and a jury trial. No specific dollar amount is specified [3][4][5].

Not an Attack on AI, Attorneys Say

"This case is not an attack against the use of AI or AI in general," lead attorney Ben Michaud said in a news release. "It is an attack on the ways these defendants acted to procure the data center in Effingham County. It is a demand for transparency and accountability" [1][2][5]. Partner Greg Gilluly added: "Government power should come from the consent of the people, not multibillion-dollar corporations having secret meetings with public officials" [1][2][5].

Previous Challenges and Official Response

In early September, the same plaintiffs sued to invalidate the data center zoning. Later that month, residents and environmental group One Hundred Miles asked a judge to throw out the development authority's deals with Octans [3]. The Effingham County Board of Commissioners declined to comment on pending litigation, per spokesperson Jake Zeigler [3]. The Current reached out to the IDA and OpenAI for comment but received no reply before publication [3]. The allegations have not been proven in court [4].