Nebius AI data center in Oxmoor Valley, Birmingham
Also called: Nebius AI factory, Alabama ADC Holdings
Nebius is building a 300-megawatt AI data center on a former office site in Birmingham's Oxmoor Valley. It got 30-year tax breaks from the city's development board. Neighbors worry about noise, water and power bills, and some have sued.
Where things stand: Construction started in mid-2026. Lawsuits by neighbors and the Humane Society are pending.
🕒 Latest update (July 2026): Two neighbors sued to stop the project; a judge let construction continue for now.
What we know
- 📍 Where201 Milan Parkway, off Lakeshore Parkway (former Regions operations center), Birmingham, Jefferson County
- 🏢 CompanyNebius
- 🏛️ Owned byNebius Group
- 👤 Built forNebius
- 🌳 Size75 acres
- ⚡ Power it needs300 megawatts (about as much as 240,000 homes)
- 🔌 Where the power comes fromAlabama Power; new substation paid for by Nebius
- 🗼 New power linesYes
- ❄️ Coolingclosed-loop cooling (company says)
- 💵 Cost$35.9 billion
- 💸 Tax breaksBirmingham Industrial Development Board approved 65% off non-school property taxes and 80% off construction sales taxes, for up to 30 years.
- 👷 Jobs promised78
❓ Still unanswered
Nobody has answered these in public yet. Can you help find out?
- How much water will it use per day? 🙋 I'll find out
- How many diesel backup generators will it have? 🙋 I'll find out
- How will the lawsuits by neighbors and the Humane Society end? 🙋 I'll find out
What happened so far
- Sept 2025Nebius bought the 75-acre former Regions site.
- March 26, 2026City zoning board recommended Nebius's substation request, but denied an Alabama Power switching station.
- May 2026City issued about $40 million in building permits to the builder.
- May 29, 2026Industrial Development Board voted 6-0 for 30-year tax breaks.
- July 2026Two neighbors sued to stop the project; a judge let construction continue for now.
Local votes and rules
⚖️ Court case
Oxmoor Valley homeowners sued the City of Birmingham, Nebius and its builder, saying the city broke its own zoning rules when it allowed the 300-megawatt data center. In July 2026 a judge ruled the case can go forward and held hearings on stopping construction. Neighbors later added claims about land sales tied to the site.
📜 Data center rules
Council voted 6-3 for new zoning rules for all sizes of data centers. The biggest ('hyperscale', over 200,000 sq ft or over 30 megawatts) must meet 20 conditions: 500 ft from homes, 1,000 ft from major transit stations, at least 5 acres, closed-loop cooling, no fossil-fuel generators except for emergencies and testing, and noise studies before and after building. A public hearing is no longer required if all conditions are met.
🤝 Agreement with the company
The city's Industrial Development Board voted 6-0 to give the Nebius data center tax breaks for up to 30 years: 65% off non-school property taxes and 80% off construction sales taxes. The mayor said the city itself did not give the tax breaks.
⏸️ Pause on new data centers
Council paused permits, site plans and business licenses for new or bigger data centers using more than 20 megawatts, for 180 days. Two projects already in the works (DC BLOX expansion and Nebius) were exempt. The pause was meant to end once new rules were in place.
An aerial photo of the area.
Where this comes from
- Nebius x Birmingham, Alabama · Nebius · 2026
- Birmingham mayor says the city didn't give Nebius data center tax breaks; here's who did · WBRC · June 27, 2026
- Birmingham zoning board recommends substation request for proposed 'AI factory' · WBRC · March 27, 2026
- Nebius AI data center construction draws neighbor concerns · WBRC · July 9, 2026
- Data center dilemma: what Nebius has to say about its controversial Birmingham project · WBHM · Sept 3, 2026
- $40 million in permits issued for new Birmingham data center · Bham Now · May 18, 2026
- Proposed Data Centers Could Use More Electricity Than All Alabama Homes Combined · Inside Climate News · Aug 19, 2026
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