Switch Data Centers has claimed a victory in its legal battle with rival developer Tract, having secured a temporary injunction relating to a site in Nevada.

The two companies have been at loggerheads since last year, with Switch seeking to block Tract from developing on land inside and adjacent to the Tahoe-Reno industrial site, in Storey County, Nevada.

Tract, though not a data center developer itself, intends to get its land “shovel ready” for data center companies to move in.

The Core Switch
Switch Data Centers – Switch

Switch, which runs its Tahoe-Reno 1 campus, also known as Citadel, on the industrial site, intends to develop more data centers on land it owns next to the Tract plot. It says Tract’s actions violate a covenant it has in place that prevents any other colo data centers from being built there.

The temporary injunction granted by Nevada’s district court relates to an easement, or access route, running through the Tract land, which is the only way to get to the Switch site. Tract intends to develop over the original easement route, so wants to provide Switch with an alternative way to get to its land.

However, Switch contends Tract has moved this easement route to make it more difficult for it to bring utilities and construction equipment to the site. It told the court that the alternative route provided by Tract was longer, passed through difficult terrain, and was only 20 feet wide, rather than the 100 feet promised in the easement agreement.

In response, Tract said it had complied with the terms of the easement agreement, and that Switch was overstating the difficulties it faced.

The court found in favor of Switch, and granted a temporary injunction forbidding Tract from developing on the original easement route until the full case comes to trial, scheduled for March 2026.

In their ruling, Judge Jason D. Woodbury said: “If Tract is permitted to move forward with developing the original easement area, Tract will substantially impair Switch’s property rights and severely disrupt Switch’s ability to develop and use the development property to expand its business.

“By contract, the relatively short period of the preliminary injunction will cause little to no harm to Tract.”

Joshua Hamilton of Latham & Watkins LLP, lead trial counsel for Switch, said: “The ruling recognizes the irreparable harm to Switch from Tract’s actions by ensuring that the status quo of the original easement area is preserved through at least trial in March 2026. Switch looks forward to continuing to vigorously pursue its rights through trial.”

A spokesperson for Tract said: “We are pleased with the Court’s order maintaining the status quo, including our relocation of the easement, until trial next March, and look forward to prevailing at trial.”

It is understood that Tract will continue developing the rest of the land while it awaits its day in court.

Switch, which is owned by DigitalBridge, has several projects ongoing in Nevada, including a new style of “AI factory” data centers announced earlier this month.

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

As reported by DCD, Tract has launched a counter-action against Switch, claiming the company and its CEO Rob Roy have been harrassing rival developers. In May, Switch was unsuccessful in a bid to get this case quashed.

Switch Data Centers is unrelated to Switch Datacenters, based out of Amsterdam.