The Data Center Debate

By state

Data centers in Alabama

5 data centers and projects on our map in Alabama, including 2 projects we track in detail. Each one links to its source. Below: where they are by county, the projects in the news, and the latest reporting from both sides.

See Alabama on the map. Existing facilities come from OpenStreetMap, a community-maintained public map that is incomplete; proposed, under construction and blocked projects are tracked one by one from news, filings and official records.

Projects in the news

Proposed Development and tax deal approved by county commission 2026-10-13

Project Red Clay

Burkeville, Lowndes · Operator: Cloverleaf Infrastructure

1500 MW · $1 billion · announced 2026-10-13

A roughly 1,000 acre, 1.5 gigawatt data center campus proposed along Highway 80 near Montgomery that the Lowndes County Commission backed with a development and tax deal on October 13, 2026. Developer projections of 225 permanent jobs and about $124 million a year in state and local taxes have not been independently verified, and residents have raised concerns about water, air and the site's proximity to the Selma to Montgomery historic trail.

Issues raised: power, water, air-pollution, noise, character, tax-incentives

Source: WSFA, 2026-10-13 · On the map

Under construction Construction start scheduled October 1, 2026; operations expected 2028

Delta Forge 2 AI Factory

Brookwood, Tuscaloosa County · Operator: Applied Digital, tenant identified in filings as Kayvens LLC

$3.2 billion · announced 2026-09-25

Applied Digital confirmed a $3.2 billion AI data center campus on about 160 acres of a nearly 1,300 acre site in Brookwood, Alabama, with Kayvens LLC named as long term tenant. Reports link the tenant to a Meta corporate address in Menlo Park, though Meta has not publicly confirmed involvement.

Issues raised: power, tax-incentives, jobs, zoning

Source: Data Center Dynamics, 2026-09-25 · On the map

By county

  • Lowndes 1 on the map
    Project Red Clay
  • Tuscaloosa County 1 on the map
    Delta Forge 2 AI Factory

Latest news from Alabama

Cited by both sides local October 13, 2026

Lowndes County commissioners approve tax and development deal for Project Red Clay

The Lowndes County, Alabama commission approved a development and tax agreement with Cloverleaf Infrastructure for Project Red Clay, a 1.5 gigawatt data center near Burkeville along Highway 80. The company projects 225 permanent jobs, about $124 million annually in combined state and local taxes, and roughly $70 million a year for county schools, with construction possibly beginning in the first quarter of 2027. Residents have opposed the project for months over its proximity to the Selma to Montgomery historic trail and concerns about noise, water and air pollution.

WSFA Jobs Local property tax revenue Local opposition and consent

Check it: The jobs and tax numbers come from the developer, not an independent review, and construction has not started.

Supports the case for local October 7, 2026

Brookwood, Alabama City Council backs $3.2 billion Delta Forge 2 data center

The Brookwood City Council passed a resolution endorsing the Tuscaloosa County Economic Development Authority's deal with Applied Digital for the Delta Forge 2 AI campus. The developer projects more than 1,000 construction jobs, over 100 full time jobs and more than $440 million in community benefits and tax revenue over 20 years. Residents at a town hall last week raised questions about the campus being near a middle school.

WBRC Jobs Local property tax revenue State tax breaks Noise, appearance and rural character

Check it: The 1,000 construction jobs number is a peak, not an annual average. The $440 million figure is Applied Digital's projection, not an audited commitment.

Cited by both sides policy October 1, 2026

Alabama data center law takes effect, requires large data centers to cover all incremental utility costs

Alabama's Senate Bill 270 took effect October 1, setting the terms under which the Public Service Commission can approve contracts for data centers that need 150 MW or more in Alabama Power territory. The law says contracts must have data centers pay the extra generation, transmission, fuel and tax costs they drive and must show benefits to other customers, but public versions of contracts remain heavily redacted and no public hearing is required.

WBRC Who pays for the grid buildout Secret contracts and disclosure Laws, bills and regulation Who holds the risk

Check it: The cost-coverage rules are new, but the PSC still reviews redacted contracts without public hearings, so transparency protections are limited.

Supports the case for company September 25, 2026

Applied Digital confirms $3.2 billion Brookwood AI campus, Kayvens LLC named as tenant

Applied Digital said its Delta Forge 2 AI Factory will be built on about 160 acres of a nearly 1,300 acre site in Brookwood, Alabama, with construction scheduled to start October 1 and operations projected for 2028. The company named Kayvens LLC as the long term tenant, an entity whose registered address is a Meta corporate address in Menlo Park, though neither company has publicly confirmed Meta as the customer.

Data Center Dynamics Jobs State tax breaks How much electricity data centers use

Check it: Applied Digital estimates about 1,000 peak construction jobs and roughly 100 permanent onsite jobs, and the campus received about $314.5 million in tax abatements alongside a $270 million community benefit commitment over 20 years.

Cited by both sides local September 25, 2026

Applied Digital and Meta suspected tenant confirmed for Brookwood, Alabama

The Alabama Gazette reports the Tuscaloosa County Economic Development Authority approved $314.5 million in tax abatements in exchange for $270 million in community benefit payments over 20 years. Applied Digital's CEO acknowledged that hyperscale data centers do not produce large amounts of permanent employment relative to their electricity draw.

Alabama Gazette State tax breaks Jobs Local property tax revenue

Check it: Verify whether Kayvens LLC is publicly confirmed by Meta and whether the $270 million community benefit figure is paid out over time or contingent on facility milestones.

Weighing it up

For the arguments behind these fights, see the case for data centers, the case against, and the questions people ask, each answered from both sides.