Photo credit: Jimmy Emerson
The Lowndes County Commission approved Tuesday development agreements for a controversial hyperscale data center project near U.S. 80 and Alabama 21.
Project Red Clay, which will be developed by Houston-based Cloverleaf Infrastructure, has been met with fierce backlash from residents over concerns about noise, environmental impact and a lack of transparency about who will operate the center after construction is complete.
Cloverleaf referred to the eventual operator as “a nationally recognized end user” in filings to the county but did not specify further. CEO David Berry said at a meeting Friday that the company “should be in a position to share more on that shortly,” according to footage posted by advocacy group Protect Lowndes County.
The county commission’s approval of the 2,200-acre site comes after the Lowndes County Economic Development Commission recommended last week that the county move forward with the project.
The data center would be the largest economic investment in the county’s history, with an expected $2.85 billion generated in local tax revenue over the next 20 years, according to Cloverleaf.
“This project represents an incredible opportunity for Lowndes County,” LCEDC Chair Thomas Ellis said in a news release. “Through the revenue generated and jobs created, we’ll be able to support our schools, fund essential services, and improve the quality of life for our residents here.”
The approval includes a 20-year tax abatement of county non-educational property tax and sales and use tax on construction and server equipment refreshment under Alabama’s Tax Incentive Reform Act.
Cloverleaf said in a news release that the project has pledged to invest $10 million through the Central Alabama Community Foundation in addition to the tax revenue.
“We believe the best developments are the ones that create lasting value for the communities where they are located,” Berry said. “Project Red Clay represents a significant investment in Lowndes County, and we are proud of the opportunity to contribute to the county’s economic future through new jobs, increased revenue, and direct investment in the community.”
The project will begin with an initial investment of around $33 billion and will have a base capacity of 1,000 megawatts, according to an information packet prepared for the commission.
The agreements approved Tuesday also create legally enforceable standards for setbacks, noise, water use, lighting and backup generator operations, “with specific requirements designed to minimize impacts on neighboring properties and ensure the project operates responsibly,” Cloverleaf said in a release.
Residents opposing the data center have packed county commission meetings for months, demanding answers about who is behind the project and how the center will impact the largely rural county.
Protect Lowndes County created a set of four demands for the project: that developers comply with a records request submitted this summer, name every entity involved in the project, disclose data about the water, energy and economics and put every document on a county-run dashboard.
Construction will create around 1,000 jobs, with around 225 permanent positions once the facility is complete, according to Cloverleaf.