Birmingham City Council considers, delays vote on data center ordinance

The Birmingham City Council considered a proposed ordinance to regulate data centers but ultimately delayed a vote to allow for potential amendments based on public comments. The ordinance, presented by Kim Speorl, zoning administrator for the Birmingham Department of Planning and Permits, and Hunter Garrison, deputy director of the Mayor’s Office of Resilience and Sustainability, aims to address the increased footprint and impact of modern hyperscale data centers. The proposed regulations would amend the city’s zoning code, requiring medium and hyperscale data centers to use closed-loop cooling systems to prevent chemical-laden water from returning to wastewater facilities. Hyperscale facilities (over 200,000 sq ft, >30 MW electrical demand) would face 19 conditions, including a 500-foot setback from residential areas, a 1,000-foot setback from public transit, and a minimum five-acre lot size. On-site power generation would be prohibited except for solar, and noise studies and landscaping buffers would be mandatory. These regulations would apply only to new data centers. Community members and organizations voiced varied opinions during the meeting. Charles Miller, policy director for the Alabama Rivers Alliance, supported the ordinance but requested a 1,000-foot setback, while Oxmoor Valley resident David Craig spoke in favor of the ordinance and the proposed Nebius data center. Conversely, fellow Oxmoor Valley resident Rob Sansome opposed the Nebius development, citing current impacts and advocating for stricter thresholds and setbacks. Industry representatives from Associated Builders and Contractors and the Birmingham Business Alliance urged the council to foster an attractive business environment for data centers. Council President Wardine T. Alexander acknowledged the potential opportunities and valid concerns regarding energy, water, environmental impact, and infrastructure strain. The delay follows a six-month moratorium enacted in March on new data center permits and ongoing public opposition to projects, including a proposed Nebius facility in Oxmoor Valley and a lawsuit against Bessemer over a separate hyperscale data center proposal. Birmingham Mayor Randall Woodfin also recommended additional time to refine the ordinance.