The Home Office announced plans for the site last October before confirming the move in January, sparking protests in the town.
Crowborough Shield filed a legal challenge in December, but it was dismissed in February because it was filed before the government decided to proceed with the plans. The Honourable Mr Justice Mould said that the decision was “at least in principle” open to challenge.
The Home Office and the Ministry of Housing, Communities and Local Government are opposing the challenge.
At the conclusion of the hearing on Wednesday, Mr Justice Mould said he would hand down his judgement at a later date.
He said: “I need to take some time to reflect on the arguments I’ve heard and read.”
Follow Sussex on Facebook, external, X, external, and Instagram, external and listen to Radio Sussex on Sounds. Send your story ideas to [email protected], external or WhatsApp us on 08081 002250.