Federal judge dismisses lawsuit against city of Imperial
Federal judge dismisses developer's sabotage claims against California city over data center project.
FILE (Cars drive past data centers on July 16, 2023, in Ashburn, Va. (AP Photo/Ted Shaffrey, File))
A federal judge on Monday dismissed a lawsuit filed by Imperial Valley Computer Manufacturing, which had accused the city of Imperial, California, of orchestrating a campaign to sabotage its proposed $10 billion data center project.
The developer, led by Sebastian Rucci, had alleged that the city engaged in illegal actions to obstruct the construction of three data centers planned across 194 acres. The project was intended to span land within the city of Imperial, Imperial County, and El Centro, with the developer claiming it would generate 1,688 construction jobs and 100 permanent positions.
U.S. District Judge Janis Sammartino ruled that the company failed to exhaust necessary administrative remedies before bringing the case to federal court. The court noted that the developer did not appeal to the city’s planning commission or seek judicial review in state court, which are standard procedures for such disputes.
The city of Imperial had previously denied the developer's site plans in July 2025, citing a requirement for zoning changes and environmental assessments. Following that decision, the developer moved the project to county land.
While the federal claims were dismissed, Judge Sammartino granted the developer leave to amend its complaint. The project has faced other legal hurdles, including a September 2026 ruling by an Imperial County Superior Court judge that required the development to undergo a full environmental review under the California Environmental Quality Act.