Building Alabama: The data centers Trump and Tuberville are calling for run on Alabama-built solar
Alabama is actively promoting itself as a hub for data center development, with political leaders advocating for growth despite national security concerns about foreign opposition. The state is adopting new legislation to regulate data center tax abatements and power contracts, exemplified by Meta's Montgomery project which is powered by Alabama-built solar energy.
President Donald Trump and U.S. Senator Tommy Tuberville have publicly advocated for Alabama as a prime location for data center development, highlighting potential tax revenue and job creation. This push comes amidst growing concerns about the origin of opposition to data centers, with some officials, including Senator Tuberville and State Sen. Sam Givhan, suggesting foreign influence, specifically from China, in online sentiment against these projects. However, the article notes that legitimate questions regarding land use, power costs, water demand, and tax incentives also exist.
The state's approach to data center growth is exemplified by Meta's hyperscale campus in Montgomery, which has committed to matching 100% of its electricity consumption with clean energy. This commitment is supported by Silicon Ranch developing two 260-megawatt solar facilities, Stockton I and II, in north Baldwin County. These facilities will utilize solar modules manufactured by First Solar in Lawrence County, creating both construction and manufacturing jobs within Alabama. Alabama Power will purchase the electricity and renewable energy credits, with a Meta-linked subsidiary covering the project costs.
Alabama's Legislature has been actively defining the terms for data center development, rather than enacting a statewide moratorium like New York. Key legislative actions include HB399, which reduces the standard maximum data center tax abatement from 30 to 20 years, with an extension option for local infrastructure investments. SB270 requires Public Service Commission review of large-load data center contracts to ensure costs are covered by the customer. Additionally, HB475, the Power to the People Act, freezes regulated electric base rates through 2028, creates a cabinet-level Secretary of Energy, and mandates public discussion on utility costs and infrastructure planning. The state aims to leverage data center demand to finance new generation, support local manufacturing, and deepen its economic capabilities.