A data center operator seeking to block a potential development near its campus in Nevada has been accused of harassing its rivals.

Switch Data Centers is attempting to get a court injunction against Tract Capital Management and NVLCO LLC over the companies’ purchase of land inside and adjacent to the Tahoe-Reno industrial site, in Storey County, Nevada, in August 2023.

Now Tract has launched a counterclaim, seeking damages and making a series of allegations about DigitalBridge-backed Switch's conduct.

Big trouble in Tahoe-Reno

Though not developing a data center themselves, Tract and NVLCO intend to make the site shovel-ready, so that data center companies could build on it in the future.

Switch, which runs its Tahoe-Reno 1 campus, also known as Citadel, on the industrial site, says this violates a covenant it has in place that prevents any other colo data centers from being built on the land.

In March, district judge James Russell, of the Nevada District Court, ruled against Switch, saying that part of the land bought by Tract and NVLCO sat outside the industrial park, and that the companies had no intention of constructing a data center themselves.

In his ruling, which denied the company’s request for a full preliminary injunction, Russell said Switch’s interpretation of the covenant was “inconsistent” with the document’s “plain language” and “contrary to Nevada law.”

Claims against Switch and Rob Roy

Switch continues to seek a permanent injunction, but now faces a counterclaim from lawyers acting on behalf of Tract.

In a filing lodged with the Nevada District Court on October 29, attorneys from the Lewis Roca Rothgerber Christie and Steptoe law firms say Switch and its CEO Rob Roy are “notorious for harassing perceived rivals to deter any entrants who might seek to compete with them in the state of Nevada.”

The filing says Roy’s conduct “is often separately motivated by personal animosity,” and the law firms attach several emails which they claim illuminate “the lengths to which Rob Roy and Switch will go to harass and smother other companies that they perceive to be a threat.”

In the emails, which have been made public as part of unsealed discovery from other court cases, it is alleged Switch “discussed intentionally interfering with a third party vendor’s relationship.” One shows Roy being warned against such actions by another member of his team.

Tract is seeking damages from Switch and Digital Bridge, as well as Roy and Digital Bridge CEO Marc Ganzi. The company declined to comment on the lawsuit. DCD has approached Switch and Digital Bridge for comment on the case.

Tract and Switch both have growth plans

Tract, which launched in 2022, announced plans to develop the disputed site in October 2023, acquiring further parcels of land in June.

In an interview with DCD, conducted earlier this year, Tract CEO Grant van Rooyen said his company aims to build ‘master-planned data center parks,’ providing all the required infrastructure and permits that allow wholesalers and hyperscalers to build their own data centers on shovel-ready land.

Founded in 2000, Switch operates its large 'Prime' data center campuses in Austin, Texas; Reno, Las Vegas; Grand Rapids, Michigan; and Atlanta, Georgia. Over the last year, it has filed to expand further in Austin and Atlanta.

DigitalBridge, alongside IFM Investors, took Switch private in an $11bn deal in December 2022. Australian pension fund Aware Super invested $500 million into Switch last year.

The company is reportedly exploring going public again, but in September announced it had secured $5 billion in new debt financing to fund its growth plans.