Prichard council questions validity of data center permit issued before moratorium

Prichard, AL – The Prichard City Council is challenging the legitimacy of a building permit previously issued for a proposed $93 million Edged data center. City leaders assert that the permit should not have been granted because the project's site plan failed to undergo the mandatory review process by the planning commission. This move could lead to the permit's invalidation and a refund of $224,000 in application fees to the developer.

Council attorney Moshe Donald Walker highlighted Section 413 of the city zoning ordinance during the August 20th council meeting, which mandates a planning commission review for site plan compliance. Walker indicated that, given the absence of this crucial step, the council is considering a resolution to declare the building permit illegally issued. The timing of the permit, issued on July 30th, is critical as it predates the city council's approval of a six-month moratorium on data centers on August 4th.

Council attorney Walker and Councilwoman Stephanie Norwood believe that the Edged data center project would now be subject to the moratorium. However, Mayor Carletta Davis, who was not present during the council's discussion on the resolution, stated that whether the project falls under the moratorium or is grandfathered in due to the earlier permit application is a legal question. The city's attorney declined to comment on the ongoing matter.

This dispute carries significant financial implications for Prichard. Mayor Davis's proposed 2026-27 budget forecasts a substantial 46.1% increase in sales-tax collections, primarily attributed to the data center project's operation. The budget also projects approximately $90,000 in annual property-tax revenue from the development, underscoring the project's importance to the city's fiscal health.