Data center activity in Alabama
Alabama's regulatory environment is heavily shaped by widespread moratorium activity, with at least 49 moratoriums enacted and only 3 rejected, one of the most lopsided moratorium ratios among Southern states. Zoning outcomes are more encouraging, with at least 19 approvals and 3 denials, and opposition has had limited success with only 1 project blocked compared to 6 approved despite pushback. Compared to neighboring Georgia, where moratorium counts are similarly high but opposition blocks projects more frequently, Alabama sees less effective organized resistance at the project level. The 60 active companies reflect strong market interest that persists despite the moratorium headwinds, suggesting developers view the pauses as temporary rather than permanent barriers.
Alabama's regulatory environment is heavily shaped by widespread moratorium activity, with at least 49 moratoriums enacted and only 3 rejected, one of the most lopsided moratorium ratios among Southern states. Zoning outcomes are more encouraging, with at least 19 approvals and 3 denials, and opposition has had limited success with only 1 project blocked compared to 6 approved despite pushback. Compared to neighboring Georgia, where moratorium counts are similarly high but opposition blocks projects more frequently, Alabama sees less effective organized resistance at the project level. The 60 active companies reflect strong market interest that persists despite the moratorium headwinds, suggesting developers view the pauses as temporary rather than permanent barriers.
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The City of Tarrant, Alabama, has approved a 12-month moratorium on data center development. Mayor Tracie Threadford stated the decision was made out of caution for future development, even though no developers have approached the city yet. City officials plan to prioritize education and resident involvement if proposals arise.
Tarrant, Alabama, is considering a temporary moratorium on data center developments to study their potential impacts on city infrastructure, including power and water. The Tarrant City Council is scheduled to hold the first reading of Ordinance No. 1177, which would pause business license applications for data centers. City officials aim to establish standards for data centers while protecting residents and pursuing economic development.
Morgan County Commission recently enacted a data center moratorium, which its chairman acknowledged was "hollow" due to lack of authority. State Senator Sam Givhan noted overwhelming opposition in the Tennessee Valley, citing energy concerns. The issue has also become a political talking point, with former Senator Doug Jones running ads against data centers.
A site in Alabama that previously housed a World War II-era plant is currently being considered for development as a new data center. This potential project indicates a new data center development in the state.
Senator Tommy Tuberville has proposed a plan concerning data centers. The plan is described as having some merits, but also contains several fatal flaws that raise concerns.
WBRC 6 News has requested public records from the City of Brookwood, Alabama, regarding a proposed 2-million-square-foot data center by Applied Digital Corporation. The documents detail a rezoning process and raise questions about a non-disclosure agreement signed by the mayor, with city officials clarifying that filings refer to the property being developed by a subsidiary. The proposed development is described as controversial and is raising new questions among the public.
WBRC filed a public records request with the City of Brookwood regarding a proposed 2-million-square-foot data center by Applied Digital. Documents indicate rezoning activities involving Evolve Energy Partners and Alawest, AL, LLC for the site. Mayor Joe Barger confirmed the proposed AI data center and defended signing an NDA through the Tuscaloosa County Economic Development Authority.
Cities across central Alabama are grappling with data center developments, with Chelsea and Homewood implementing moratoriums to establish zoning standards. Residents in Brookwood continue to voice concerns about a proposed project. The article outlines the typical multi-stage process for data center projects, from land acquisition to power infrastructure and public approvals.
The city of Anniston, Alabama, has enacted a moratorium on data center development. Concurrently, Floyd County, Georgia, has adopted new development regulations for data centers, addressing concerns related to power consumption, water usage, noise, and future growth.
State Senator Sam Givhan reports "overwhelming opposition" to new data centers in the Tennessee Valley, citing energy concerns and a sentiment shared by his constituents. Several Alabama cities have enacted moratoriums, and state and national politicians are debating further bans and the elimination of tax incentives for data centers. Givhan plans to introduce legislation to ban such subsidies in the state.
Alabama counties express a lack of authority regarding data center development regulations. They are cautioning against implementing industry-specific zoning, suggesting a challenge in local governance over such projects.
The Dale Jackson Show discusses the increasing demand for data centers and advises US municipalities to leverage this buying trend. He suggests that communities should negotiate aggressively for local benefits like infrastructure investments, rather than offering incentives or outright rejecting data center projects. He acknowledges concerns about power capacity, particularly in North Alabama, and calls for developers to contribute to grid upgrades.
The Cullman City Planning Commission postponed discussion on Ordinance No. 2026-42, which would prohibit data centers in city limits, as the agenda item was withdrawn for further review. No action was taken due to a lack of quorum at the meeting. This follows a temporary moratorium on data centers previously enacted by the Cullman City Council.
Data center development in Alabama, driven by the growth of generative AI, is facing increased public opposition due to environmental concerns and a lack of transparency. Debates are ongoing regarding local rules and legal questions surrounding these facilities, including a controversial Nebius project in Birmingham.
U.S. Senator Katie Britt supports former President Donald Trump's "Ratepayer Protection Pledge" regarding data centers, which aims to protect consumers from electricity price increases. Britt advocates for local control over data center placement, opposing a national moratorium while also stating that data centers shouldn't be built everywhere. She believes the issue is being used as a political wedge.
Senator Tommy Tuberville, a Republican gubernatorial nominee in Alabama, has shifted his stance on data center development, now advocating for greater local control and full taxation of these facilities. This change comes after widespread public opposition and a proposal from his Democratic opponent, Doug Jones, for a one-year moratorium on data center construction. Tuberville previously dismissed concerns but now acknowledges fears about rising power bills and urges developers to be more transparent.
Democratic PSC candidate Sheila McNeil is advocating for a public, bipartisan Alabama Data Center Accountability Summit to develop statewide oversight for the state's growing data center industry. The summit aims to create a coordinated plan for managing data centers' demands on electricity, water, land, and public infrastructure. McNeil argues the current project-by-project approach is inadequate for addressing the cumulative effects of these developments.
A North Alabama city has enacted new regulations specifically for data center development. These new rules outline the requirements that future data center projects in the area will need to meet.
Senator Katie Britt advocates for President Trump's voluntary data center ratepayer protection pledge to become law to shield utility customers from power costs. She also supports water recycling for data centers and believes localities should decide on data center projects, opposing national moratoriums. The discussion highlights a growing bipartisan push to manage data center infrastructure burden amid political challenges and grassroots opposition.
A proposal is under consideration that could reduce public transparency regarding future data center development plans. If enacted, this change would limit the public's access to information about new projects.