Birmingham Mayor Says the City Didn’t Give Nebius Data Center Tax Breaks
Nebius is planning a multi-billion-dollar AI data center in Birmingham's Oxmoor Valley, which includes a significant tax incentive package approved by the Industrial Development Board. Mayor Randall Woodfin has stated the city is not responsible for these incentives. Neighbors have filed a lawsuit citing noise and environmental concerns.
Nebius, a tech company, is proceeding with plans for a multi-billion-dollar AI data center in Birmingham's Oxmoor Valley, located at the former Regions operations center site. The project is expected to involve a nearly $35.9 billion investment over 30 years and create 78 jobs with an average salary exceeding $90,000.
The project includes a substantial tax abatement package approved by the Birmingham Industrial Development Board (IDB) on May 29, 2026. This package offers significant abatements on property and sales and use taxes, contingent on Nebius meeting its investment and employment projections, with clawback provisions in place. Birmingham Mayor Randall Woodfin has publicly distanced the City of Birmingham from the incentive deal, stating neither he nor the city were involved, attributing the decision to the independent IDB, whose members are appointed by the Birmingham City Council.
Nebius spokesman John Sutter confirmed that economic incentives were a key factor in the company's decision, projecting the investment will generate $87 million annually in tax revenue for the state, city, county, and schools. However, some Oxmoor Valley neighbors have raised concerns and filed a lawsuit regarding potential noise and environmental impacts. Nebius counters these claims, citing a sound study projecting no increase in average noise levels, and asserting a closed-loop cooling system will consume less water than the previous site occupant. Alabama Power has also confirmed sufficient grid capacity for the project without impacting residential electricity rates, with Nebius responsible for utility improvement costs.
The City of Birmingham determined that all zoning and permitting requirements were met, and Nebius's site development plan received unanimous approval from the Oxmoor Steering Committee. Despite these approvals, questions persist regarding the accountability structure between the Birmingham City Council and the IDB concerning such economic development deals.