The Lowndes County Commission last week approved a 20-year, $1.15 billion tax break for Alabama’s largest planned data center, known as Project Red Clay, prompting backlash from county residents. 

The commission’s vote on Oct. 13 was unexpected, as the meeting’s agenda had said the commission would consider a development and tax abatement plan for Cloverleaf Infrastructure, the developer behind Project Red Clay, at their Oct. 20 meeting. Last week’s meeting lasted for only 10 minutes, with commissioners approving the measure 3-2.

The vote came days after a public question-and-answer session between Cloverleaf and Lowndes County residents on Oct. 9. Lowndes County residents have voiced concerns over the impact and transparency of the project — especially about the strain the project might place on the area’s water and electric infrastructure — by showing up to protest at meetings. At the Oct. 9 Q&A session, about 150 people were in attendance. For last week’s meeting where commissioners approved the tax abatement plan, only about 40 people were in attendance.

Lowndes County Commissioners and Cloverleaf have presented Project Red Clay as an economic boon for the area. The project is expected to create 225 permanent jobs, as well as 1,000 temporary construction jobs. The data center is also expected to bring in $124 million in local tax revenue and $25 million in state revenue per year, despite the abatement plan.

The approved abatement plan decreases the amount of non-educational county taxes that Cloverleaf will have to pay by 50% — lowering their taxes by $57.5 million per year, or by $1.15 billion over the 20 year span of the abatement plan. Under the plan, Cloverleaf will not have to pay certain county sales and use, property and other taxes. The development will still have to pay education taxes, as companies can not be exempt from paying educational taxes under state law.

Project Red Clay is the largest approved data center project in the state. The 800-acre center is set to be built in unincorporated Lowndes County along U.S. Highway 80 and Alabama Highway 21. The center is expected to require 1,500 megawatts of energy capacity from Alabama Power, roughly enough to power 1 million homes. 

Cloverleaf has agreed to a 55 decibel — which is about as loud as normal conversation — sound cap for the data center, as well as to restrictions on vegetation destruction. The developer has also promised low water usage and to pay for water infrastructure improvements. 

It is still unclear what company the data center is being built for. Cloverleaf has said they are still finalizing details with the center’s end user.

The tax break has prompted backlash from several advocacy groups, including the NAACP and the Southern Environmental Law Center. 

“The vote in Lowndes County represents a larger trend in the state and in the County to leave the people most impacted out of the decisions and force data centers into places that are already bearing the brunt of environmental and climate harms. This comes for the vague possibility of economic gain,” said NAACP Director of Environmental and Climate Justice Abre’ Conner in a press statement.

“What we witnessed on Tuesday was disgraceful. Lowndes County government officials have blatantly discouraged public access and input into such a consequential decision that will impact generations to come,” said Ryan Anderson, staff attorney at the Southern Environmental Law Center, in a joint statement with the NAACP.

Construction on Project Red Clay is expected to begin in early 2027.

Alabama top stories in brief

Elmore County prison construction fails to be completed by second deadline

• The Alabama Department of Corrections confirmed that completion of the $1.25 billion Gov. Kay Ivey Correctional Complex in Elmore County will be delayed.
• The construction of the new 4,000 bed men’s prison was supposed to be completed by Oct. 15. This is the second time the project has failed to be completed by its deadline, as the prison was initially supposed to be completed in May.
• In last week’s statement, ADOC said the project is 85% completed and that the Montgomery-based contractor, Caddell Construction, working on the project remains responsible for its completion. 
• ADOC also said that the Alabama Corrections Institution Finance Authority “has exercised certain of its contractual rights, including its right to withhold payments from the design-build contractor, and is withholding funds sufficient for liquidated damages now due.” 

Alabama’s interstates emerge as campaign issue as governor’s race nears end

• Republican nominee for governor and current U.S. Sen. Tommy Tuberville last week announced that, if he were to be elected governor, he would task the Alabama Department of Transportation to develop a plan to add a third lane to all interstates in the state — starting with Interstate 65.
• Tuberville discussed the issue at a campaign appearance at a fish fry event hosted by the Baldwin County Republican Party. At the event, he said his goal is to widen all stretches of interstate throughout the state to six lanes within the next 10 to 12 years. He did not elaborate on plans to fund the widening project
• “It’s a long process, but if we don’t start now, it will be 25 to 30 years,” Tuberville said.
• Following Tuberville’s comments, Democratic nominee Doug Jones questioned Tuberville’s proposal, saying, “It is easy to say, ‘I want to six-lane all the interstates,’ and certainly everyone agrees that I-65 needs to be six lanes, it is another to carefully plan where to best utilize state dollars and how to best leverage federal dollars.”
• Jones also called for an independent review of ALDOT to increase agency transparency. Jones said a review isn’t needed due to any particular problem with the agency, but, instead, because “it has been a long time since any review” has occurred.

North Alabama man tests positive for measles

• The Alabama Department of Public Health confirmed last week that a North Alabama man who was in the Huntsville area earlier this month has tested positive for measles. 
• ADPH said the individual visited a Subway on Bailey Cove Road on Oct. 3, 4 and 5. The individual also visited a Publix on Bailey Cove Road Southeast on Oct. 4.
• The individual was infected with measles during a trip to South America. ADPH did not clarify the individual’s vaccination status.
• ADPH has confirmed that there have not been any more reported cases since this man’s case was confirmed.

Public television commissioner resigns, leaving only one remaining

• Alabama Educational Television Commissioner Tijuanna Adetunji resigned last week, meaning six of the board’s seven members have either resigned or been removed this month.
• Adetunji did not provide a reason for her resignation. 
• Gov. Kay Ivey is yet to appoint someone to fill Adetunji’s spot on the AETC board. Adetunji was the board’s commissioner for Alabama’s 2nd Congressional District. 
• Last month, Ivey removed five commissioners from the board, saying the board needs a fresh start. 
• The move came after months of deliberation from the board, which oversees Alabama Public Television, over whether APT should remain affiliated with PBS. A survey the board voted to conduct, showed a majority of Alabamians approve of PBS’s programming.

Articles you may have missed

• Fall is in full swing and so is fall bird migration. Check out this guide to what birds you can expect to pass through Alabama this winter and how you can get in on the birdwatching fun.

Like our work? Then support it!

Want to get early access to columns, unique newsletters and help keep The Sunrise News active? Then support us on Ko-Fi!

Support our work!