Data center growth in Alabama: 492 Alabamians weigh in

Data center growth in Alabama: 492 Alabamians weigh in

News ClipThe Bama Buzz·AL·5/5/2026

Alabama communities are divided on data center growth as new facilities prompt local and state-level regulatory actions. Several cities like Athens, Birmingham, and Colombiana have enacted ordinances, while a state bill (HB 399) addressing tax incentives is awaiting the governor's signature. Public opinion, as revealed by a poll, shows a preference for regulating data centers or outright opposition.

zoningoppositionenvironmentalgovernmentelectricitywater
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Gov: City of Athens, Birmingham Planning Commission, Alabama House, Gov. Ivey, Sen. Katie Britt
The rapid growth of data centers in Alabama has led to mixed public reactions and proactive regulatory efforts across the state. While 23 data centers are already operational, and more proposed, many municipalities are implementing regulations to manage future developments. For instance, the City of Athens passed a resolution making data centers a conditional use in industrial zones, requiring additional scrutiny. Separately, the Birmingham Planning Commission approved an ordinance to regulate data center placement and operations, spurred by a proposed AI data center by Nebius in Oxmoor Valley. Colombiana also enacted regulations, including sound studies, landscape buffers, and height limits. On a statewide level, House Bill 399, which aims to curb tax incentives for data center facilities, unanimously passed the House and awaits Governor Ivey's signature. State leaders, including Sen. Katie Britt, have voiced concerns over environmental impacts like increased utility costs and water runoff, while acknowledging the strategic importance of data centers for AI advancements. A poll conducted across The Bama Buzz's publications, surveying 492 Alabamians, revealed that a majority are either in favor of regulating data centers or oppose them entirely, highlighting widespread sentiment that advancements need to be matched with suitable oversight.