Data centers in Alabama

📜 State laws

Data center power contracts must cover their costs (SB 270, Act 2026-610): law since October 1, 2026 · April 17, 2026
SB 270 by Sen. Lance Bell became Act 2026-610. It covers power contracts between a utility and a large data center. When the Public Service Commission reviews such a contract, it must decide if the price and terms are expected to pay back all the extra costs of serving the data center and bring benefits to other customers. The law took effect on October 1, 2026. Contracts filed before that date are not covered by the new review rules, according to WBRC. Source

Shorter data center tax breaks from 2027 (HB 399, Act 2026-573) · April 17, 2026
HB 399 by Rep. Leigh Hulsey became Act 2026-573. For data center tax deals granted on or after January 1, 2027, the longest tax break drops from 30 years to 20 years. Ten more years are possible only if the company makes certain local investments. Data centers that use 100 megawatts or more must start paying state non-school property tax and state sales tax on building materials, power equipment, backup generators and batteries once they open. The governor can still give the full break in a 'targeted' (struggling) county. The deadline to get these tax breaks moves from July 31, 2028 to July 31, 2032. Deals made before June 1, 2026 are not affected. Source

Power to the People Act (HB 475, Act 2026-345): bigger Public Service Commission and a base rate freeze · April 3, 2026
Gov. Kay Ivey signed HB 475 on April 3, 2026. It grows the Public Service Commission from 3 to 7 members, with seats tied to the state's congressional districts. Four new members are named by the governor. It creates a Secretary of Energy, picked by the governor, who controls the commission's agenda and staff. Alabama Power's base rate (Rate RSE) cannot go up from October 1, 2026 to January 1, 2029. Fuel charges and other parts of the bill are not frozen. It has no rules written just for data centers. Source

House version of the data center power bill (HB 403): did not finish · March 17, 2026
HB 403 was the House twin of SB 270, backed by Gov. Ivey. It passed the House on March 17, 2026 but went no further. The Senate version (SB 270) became law instead. Source

Senate version of the data center tax bill (SB 265): did not finish · April 9, 2026
SB 265 by Sen. Andrew Jones was the Senate twin of HB 399. It was carried over in the House on April 9, 2026 and never got a final vote. The House version (HB 399) became law instead. Source

💡 Who pays for the power

New Public Service Commission rules for Alabama Power data center contracts (docket 33709) · Oct 6, 2026
On October 6, 2026, the Public Service Commission voted 3-0 on how it will review power contracts between Alabama Power and data centers that need 150 megawatts or more. Alabama Power must file a public request naming the data center company, its parent companies, the location and the most power it can use. The full contract and cost numbers go only to the commission's staff and the Attorney General's office, and stay secret. The commission is supposed to vote within 90 days. If it does not vote, the contract counts as approved. There is no public hearing. The Attorney General's office had asked for a real vote on every contract. Energy Alabama called the result 'a rubber stamp.' Source

Alabama Power data center contracts filed in 2026 · Aug 14, 2026
Alabama Power filed at least three data center power contracts with the Public Service Commission in 2026: Dotier, LLC (a Meta company) on June 18, Alabama ADC Holdings, LLC (tied to Nebius, Oxmoor Valley in Birmingham) on July 24, and Woostor, LLC on August 14. The public copy of the Nebius contract hides the contract length, the amount of power, prices, security payments and minimum bills. Alabama Power says each deal pays all of its own extra costs. Before the new rules, such contracts were approved after 10 days unless the commission said no; Alabama Power agreed to 45 days for these. Source

Alabama Power rates frozen through 2027 · Dec 3, 2025
On December 3, 2025, the Public Service Commission voted 3-0 to keep Alabama Power rates at 2025 levels through 2027. A bill increase of about $3.32 a month for the $622 million Lindsay Hill gas plant purchase was pushed back to 2028. The same vote approved two solar farms in Baldwin County (Stockton I and II) to serve a Meta data center. Energy Alabama called the freeze a delay that shifts costs. Source

Who the Public Service Commission oversees · Oct 7, 2026
The Public Service Commission sets rates only for Alabama Power. Power co-ops, city-owned power systems and TVA (which serves much of north Alabama) are not regulated by the state commission. So a data center served by TVA or a co-op does not go through the commission's new contract review. Source

💵 Tax breaks

Property and sales tax breaks for data centers (Chapter 9B abatements) · Oct 7, 2026
Alabama lets cities, counties and their industrial development boards cut taxes for data centers. Under deals made before January 1, 2027, a data center can skip state and local non-school property taxes and most sales tax on building and equipment for up to 30 years if it invests more than $400 million within 20 years (10 years for up to $200 million, 20 years for $200 to $400 million). School taxes are not cut. A city or county must pass a resolution to cut its own taxes. From 2027, Act 2026-573 lowers the limit to 20 years and makes data centers of 100 megawatts or more pay some state taxes once they open. Source

🤐 Secret deals and public records

Alabama Open Records Act: who can ask and how long it takes · Oct 7, 2026
Every Alabama resident has a right to see and copy public records. The law sets deadlines: the office must confirm your request within 10 business days, and answer within 15 business days after that (it can extend in 15-day steps). Big requests (over 8 hours of work) can take 45 business days or more. The office can charge a reasonable fee first and can ask for proof you live in Alabama. It may answer people from other states but does not have to. Records about security or 'critical infrastructure' (which can include power systems) can be held back. Source

Closed-door talks about new businesses are allowed · Oct 7, 2026
Under the Open Meetings Act, a city council or county commission can meet in private (executive session) to discuss early talks to bring in a business, if someone involved first says in writing or on the record that public talk would hurt the deal. Votes must still be taken in public. Source

Secret deals (NDAs) with data center developers · July 14, 2026
No Alabama law limits secret deals (NDAs) between local officials and data center developers. In Bessemer, the mayor, city attorney and chief of staff signed an NDA for Project Marvel in February 2025 (changed in February 2026). It barred the city from sharing developer names, site plans and studies, and required officials to destroy the developer's confidential papers when asked. The city released it in July 2026 after the Alabama Rivers Alliance and the Southern Environmental Law Center threatened to sue. Columbiana's former mayor also signed a secrecy agreement with DigiPowerX. Source

Data center power contract details stay secret · Oct 6, 2026
Under the October 2026 Public Service Commission rules, the public can see who the data center is, where it is and how much power it may use, but not the contract prices, length or cost studies. Only commission staff and the Attorney General's office see those. Source

💧 Water

Who checks big water use: ADECA Office of Water Resources · Oct 7, 2026
Alabama has no permit system for taking water like many states. Anyone who takes more than 100,000 gallons of water on any day from Alabama's rivers, lakes or underground must file a 'declaration of beneficial use' with the Office of Water Resources (part of ADECA) and get a certificate of use, then report monthly use once a year. The certificate does not give a permanent right to the water. A data center buying water from a city water system does not need its own certificate. Water pollution and construction runoff permits come from ADEM; for example, ADEM approved a construction stormwater permit for an Applied Digital site in Brookwood on July 20, 2026. Source

🌫️ Air and generators

Who approves generators and gas turbines: ADEM · Oct 7, 2026
The Alabama Department of Environmental Management (ADEM) Air Division issues air permits for backup diesel generators, gas turbines and power plants. Draft permits are posted for public comment on ADEM's public notices page, sorted by county, and anyone can sign up for email alerts. As of October 7, 2026 we found no air permit notice that named a data center. Source

🙋 How to have your say

Who decides a data center near you · Oct 7, 2026
Alabama has cities, towns and counties. There are no townships. A city council or town council decides zoning inside its limits, usually after its planning commission gives advice. Most of Alabama's 67 counties have no zoning power at all outside towns, because counties can only do what the Legislature allows. So in most rural areas no local vote is needed to build a data center, and county pauses (moratoriums) cannot be enforced. In August 2026 the county commissioners' group asked the Legislature to look at giving counties zoning power, possibly in 2027. Legal experts say cities can ban or limit data centers if they have good health or safety reasons. Source

Rezoning: newspaper notice and a public hearing · Oct 7, 2026
Before a city or town changes zoning, it must publish the proposal in the newspaper at least 15 days before the vote (or a notice three weeks in a row with a map), and hold a public hearing where anyone can speak for or against it. Watch for these notices in the legal section of your local paper. Source

Appealing a zoning board decision: 15 days · Oct 7, 2026
If you are harmed by a decision of the Board of Zoning Adjustment (variances and special exceptions), you must first file a written notice of appeal with the board within 15 days. Then you must file the appeal in circuit court within 45 days of the decision. The court looks at the case fresh. The board's decision stays in place unless the court stops it. Source

How to ask for public records · Oct 7, 2026
Use the office's own request form or rules if it has them; otherwise hand-deliver or mail your request to the main office. Name the records as clearly as you can (for example, 'any non-disclosure agreement with a data center developer since 2024'). You must be an Alabama resident. Expect an answer to confirm receipt in 10 business days and a real answer 15 business days after that. Source

Watch tax deals at the industrial development board · Oct 7, 2026
Data center tax breaks are usually voted on by a city or county industrial development board or economic development authority, not always by the council. A city or county must pass a resolution to cut its own taxes. Check these boards' agendas, which often use code names. Source

Following data center power deals at the Public Service Commission · Oct 7, 2026
Alabama Power must file a public request for each big data center contract. The commission meets monthly in Montgomery and posts its agenda online. There is no public hearing on these contracts, but you can watch the docket, send comments, or contact the Attorney General's office, which speaks for utility customers at the commission. The commission's consumer line is 1-800-392-8050. Source

🧾 Help with your bills

Low Income Home Energy Assistance Program (LIHEAP) · Oct 7, 2026
Help paying heating and cooling bills. Apply at the community action agency for your county, not at the state office (ADECA). Older adults, people with disabilities and families with young children come first. Source

Alabama Weatherization Assistance Program · Oct 7, 2026
Free home repairs that cut energy use, like insulation and sealing leaks, after an energy check of your home. Apply at the agency that serves your county. Source

📞 Who to contact

Alabama Public Service Commission (PSC) · Oct 7, 2026
Sets Alabama Power's rates and reviews its data center power contracts. Takes consumer complaints (1-800-392-8050). Does not regulate TVA, co-ops or city power systems, and does not approve data center buildings. Source

Alabama Attorney General's Office (consumer interest) · Oct 7, 2026
Represents utility customers at the Public Service Commission and gets the full, secret copies of data center power contracts. Source

Alabama Department of Environmental Management (ADEM) · Oct 7, 2026
Air permits for generators and turbines, water pollution and construction stormwater permits. Posts public notices by county. Source

ADECA Office of Water Resources · Oct 7, 2026
Gets the declarations and gives certificates for anyone using over 100,000 gallons of water a day. Source

ADECA (energy bill help) · Oct 7, 2026
Runs LIHEAP and weatherization through local community action agencies. Source

Alabama Department of Revenue · Oct 7, 2026
Explains and tracks Chapter 9B tax breaks, including data center rules under Act 2026-573. Source

Alabama Legislature (ALISON) · Oct 7, 2026
Bill search and the Code of Alabama. The 2027 regular session is where county zoning and data center bills would come up. Source