Tuscaloosa County approves controversial $3 billion AI hub
Tuscaloosa County approved a controversial $3.2 billion AI data center project in Brookwood, Alabama, despite strong resident objections. The project, led by Applied Digital with Meta-linked Kayvens LLC as a tenant, received a 20-year, $314.5 million tax abatement. It is expected to bring over $440 million to the community and generate over 1,000 construction jobs.
Tuscaloosa County has approved a controversial $3.2 billion AI data center, named Project Highlands or "Delta Forge 2 AI Factory," to be built in Brookwood, Alabama. The approval comes despite "vociferous objections" from some local residents who expressed concerns about noise, water and air pollution, strain on the power grid, and potential "heat island" effects. The Tuscaloosa County Economic Development Authority (TCEDA) unanimously voted on September 24 to grant a 20-year, $314.5 million non-educational tax abatement package, covering property, sales, and use taxes for the 1.26 million square foot, 160-acre facility.
Applied Digital Corp., a Dallas-based designer and operator of data centers, will construct the facility. Kayvens LLC, a foreign limited liability company registered in Delaware with a principal address linked to Meta Platforms, Inc. in Menlo Park, California, is named as the long-term tenant. Applied Digital acquired nearly 1,300 acres of land north of Brookwood Parkway in June, though not all acreage is covered by the TCEDA agreement.
The project is anticipated to begin construction on October 1, with operations commencing in late 2028 or early 2029. It is expected to generate over $440 million for the community over two decades, including $131.5 million for schools. Applied Digital has also committed to $270 million in community benefit payments to TCEDA, which will be distributed to entities such as the cities of Tuscaloosa, Northport, and Brookwood, Tuscaloosa County, the Tuscaloosa County Road Improvement Commission, and the DCH Health System.
Brookwood Mayor Joe Barger supported the project, emphasizing the importance of growth for the community and anticipating Applied Digital to be a "good neighbor." Applied Digital also stated that it would cover the full costs of energy needs, aiming to prevent additional costs for other Alabama Power customers. The company's chairman and CEO, Wes Cummins, highlighted the project's role as the company's fifth "AI Factory" campus, underscoring its commitment to community success alongside its infrastructure development.