Alabama sets stricter data center rules. But there’s a loophole
The Alabama Public Service Commission approved stricter disclosure and review requirements for future data center projects, including public summaries of contracts and the facilities’ maximum electricity use. However, projects larger than 150 megawatts can still be approved automatically if the commission does not vote within 90 days, a provision criticized by environmental and clean-energy advocates.
The Alabama Public Service Commission approved new rules requiring Alabama Power to disclose key information about data center contracts, including the customer’s name, parent entities, project location and maximum electricity demand. Unredacted contracts will be reviewed by the commission and the Alabama Attorney General’s Office, and data centers larger than 150 megawatts will be subject to commission approval procedures.
The rules retain a 90-day deemed-approval provision, meaning a project can move forward if the commission does not vote within that period. PSC President Cynthia Lee Almond supported public votes on data center contracts, while Commissioner Chris Beeker III backed the provision as a way to encourage timely action. The Southern Environmental Law Center and Energy Alabama criticized the process for allowing silence to count as approval and for providing no public hearing or comment requirement.