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Main image for Spurned Data Center Sues College, Seeks $200M
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Spurned Data Center Sues College, Seeks $200M

PhillyDeals Philadelphia Inquirer blog

2.4.2015

Data Centers LLC, a West Chester start-up that hoped to build a data center and gas-fueled power plant at the University of Delaware, has filed a lawsuit in Superior Court in Delaware blaming the school for breaking a rental agreement and other contracts and asking for $200 million in damages, mostly from “lost revenues” from electric power sales it couldn’t realize without the university’s construction approval.

Despite support for the project from Delaware political and labor union leaders, the university said in July that the project “was not a good fit” for the campus and turned Data Centers down. In its complaint, Data Centers accuses the university of giving in to “activists.” Other locations, which he did not name, “wanted us badly,” Data Centers CEO Earl Eugene Kern said in a statement accompanying the complaint. “A deal is a deal,” he added.

McCarter & English represents Data Centers LLC.

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