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Tuscaloosa County Approves $314.5 Million Tax Break for Planned AI Data Center

Applied Digital describes Project Highlands as a $3.2 billion investment. Some Brookwood residents have objected to the proposed facility.

By 2 min read
Tuscaloosa County Approves $314.5 Million Tax Break for Planned AI Data Center
Tuscaloosa County Approves $314.5 Million Tax Break for Planned AI Data Center

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Tuscaloosa County has approved a 20-year tax break valued at about $314.5 million for a proposed AI data center in Brookwood, Alabama. The county’s Economic Development Authority approved the package on September 24. The developer, Applied Digital, describes Project Highlands as a $3.2 billion investment—but that figure is the company’s estimate, while the county’s vote is specifically about tax relief. The project is planned as a 1.26-million-square-foot facility, roughly the size of Meta’s operating data center in Montgomery. Applied Digital says the Brookwood site could begin operating in late 2028 or early 2029. A data center is more than a room of servers: it also needs substantial cooling, electrical systems, networking equipment, and backup power. Those demands make the proposal a major physical development, not just a technology project. Alabama already has roughly 25 data centers, including sites still in development. Meta says its Alabama campuses represent more than $3 billion in investment, and Google has invested more than $2 billion in two data-center buildings in Jackson County, where an expansion is underway. Those examples show the scale of investment in the state, but they don’t establish how many people Project Highlands would employ. Some Brookwood residents have objected to the proposal. The tax approval does not mean the facility is built or staffed; the key question is whether the project moves toward its projected 2028-or-2029 opening while those concerns are addressed.

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3 key points

The proposed campus would add a 1.26-million-square-foot computing site to an Alabama market with about 25 data centers, but approval of tax relief does not mean the project is built or staffed. On September 24, Tuscaloosa County’s economic development authority approved a 20-year package valued at about $314.5 million for Applied Digital’s Project Highlands. The developer pegs its investment at $3.2 billion;...

  1. 01

    Meta’s Montgomery data center is nearly the same size, at almost 1.3 million square feet; its Alabama campuses represent more than $3 billion in investment.

  2. 02

    Google has invested more than $2 billion in two 135,000-square-foot data-center buildings in Jackson County, where an expansion is underway.

  3. 03

    The state’s roughly 25 data centers include facilities operating and in development; employment figures for other campuses do not establish Project Highlands’ staffing.

A proposed AI data center in Brookwood, Alabama, has secured a 20-year tax abatement worth about $314.5 million. The Tuscaloosa County Economic Development Authority approved the package for Project Highlands on September 24.

The investment and the incentive

Applied Digital describes Project Highlands as a $3.2 billion investment. That is the developer’s figure for the project; the county’s decision concerns tax relief for it. Brookwood is the proposed site of a 1.26 million-square-foot facility that could begin operating in late 2028 or early 2029.

A data center houses the servers that process information, along with cooling, electrical and networking equipment. Backup power helps keep services available. Electricity, land and internet connectivity are among the factors companies weigh when choosing a site. Those requirements give the Brookwood proposal a physical footprint well beyond its server rooms.

A comparison with Alabama’s existing campuses

Alabama has roughly 25 data centers, a count that includes operating facilities and projects in development. Meta runs campuses in Montgomery and Huntsville, and says its investment across the two exceeds $3 billion. Its Huntsville facility is nearly 3.5 million square feet and supports more than 300 jobs; the Montgomery facility supports more than 100.

Google has invested more than $2 billion in two 135,000-square-foot data-center buildings in Jackson County, where a major expansion is underway. The existing campuses show that billion-dollar spending on Alabama computing facilities is not unique to Brookwood. Their reported sizes and staffing describe those sites, though, not what Project Highlands will employ.

The Brookwood objection

Some Brookwood residents have objected to Project Highlands. The authority’s vote gives the development its tax package despite that opposition. For the town, the question now is whether the project can move forward while addressing the residents who have raised objections.

Sources

  1. tuscaloosanews.comWhat is a data center? Inside Alabama's tech boom - The Tuscaloosa News

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