What is a data center? Inside Alabama's tech boom
Alabama is experiencing a data center boom, attracting major investments from companies like Meta and Google across the state due to available land, electricity, and connectivity. A new AI data center, Project Highlands, in Brookwood, Tuscaloosa County, recently received a significant tax abatement package. The project, backed by Applied Digital Corp., has faced objections from local residents.
Alabama is rapidly emerging as a significant hub for data center development, attracting billions in investments from major technology companies such as Meta and Google. The state's appeal stems from its abundant land, access to electricity, and robust internet connectivity, crucial factors for these power-intensive operations.
Meta, the parent company of Facebook and Instagram, has established large data center operations in Huntsville and Montgomery, representing over $3 billion in combined investments and supporting more than 400 jobs. Google has also invested more than $2 billion in its facility in Jackson County, which is currently undergoing a major expansion and supports several hundred direct and operational roles.
The article also addresses the environmental impact of data centers, particularly their water consumption. While a medium-sized facility might use around 100 million gallons annually, and hyperscale centers up to 5 million gallons daily, national estimates suggest that golf courses use significantly more water for irrigation.
The state's data center landscape continues to grow, with approximately 25 operating facilities and projects in development. Among the newest is Project Highlands, a planned 1.26 million-square-foot AI data center in Brookwood, Tuscaloosa County, anticipated to begin operations by late 2028 or early 2029. The Tuscaloosa County Economic Development Authority recently approved a 20-year tax abatement package valued at approximately $314.5 million for the $3.2 billion development by Applied Digital Corp., despite facing objections from some Brookwood residents.