Columbiana data center signs $1B agreement, future plans revealed

Digi Power X has secured a significant $1.1 billion master services agreement with Cerebras Systems for the colocation of its 40-megawatt AI data center in Columbiana, Alabama. The 10-year contract has the potential to reach $2.5 billion with renewal terms, signaling a major step for Digi Power X's entry into the top tier of the AI compute industry.

Despite this success, the Columbiana City Council unanimously rejected a tax abatement proposal from Digi Power X. The company had requested abatement on state and local non-educational property taxes, as well as construction-related transaction taxes through 2027, and taxes on mortgages and deeds. The City Council is the sole governmental body with jurisdiction over such abatements for the Columbiana facility, though another proposal could be considered in the future.

Construction on the $371.5 million facility is slated to begin in May 2026, with completion by March 2027 and service commencing in April 2027. Digi Power X plans to create 45 permanent jobs by year three, committing to a local hiring target of at least 50 percent Shelby County residents. The company also intends to partner with local universities and colleges for training.

Community opposition to the data center has been evident, with residents expressing disapproval and a town hall held in January 2026 to address concerns. In response to these concerns, the Columbiana City Council approved an ordinance in February placing restrictions on any future data centers. Digi Power X's abatement request included "risk and good-neighbor provisions" to address potential impacts such as noise, light, water consumption, and air emissions, with monitoring by the Alabama Department of Environmental Management.