Lambda plans $33.1 billion Alabama data center campus
Lambda plans to build a large scale data center campus in Lowndes County, Alabama, representing an estimated $33.1 billion investment in the state. The project is expected to create more than 1,000 construction jobs and generate billions of dollars in projected tax revenue.
- Lambda plans an estimated $33.1 billion data center investment in Alabama.
- The project is expected to create more than 1,000 construction jobs.
- More than $2.8 billion in local tax revenue is projected through 2049.
- Construction is expected to begin in the first quarter of 2027, pending regulatory approval.
- Lambda and Cloverleaf Infrastructure are investing $10 million through a Community Benefits Agreement.
Major investment and projected local revenue
The proposed Red Clay Technology Center Campus is being readied for development by Cloverleaf Infrastructure. Lambda said the project is expected to support more than 225 full time roles in operations, technical and support functions once developed.
According to Lambda, the project is projected to generate more than $2.8 billion in local tax revenue through 2049, including more than $1.6 billion for Lowndes County Public Schools. Combined state and local tax revenue is projected to reach $3.4 billion through 2049.
The company said it will work with local partners to identify opportunities for Lowndes County residents to fill operational positions and for local contractors to support construction. The campus is planned near U.S. Highway 80 and Alabama Highway 21, although final design details will be developed as planning progresses.
Construction could begin in early 2027
The project is expected to be powered by Alabama Power, pending regulatory approval. Lambda said construction is expected to begin in the first quarter of 2027 and could take up to five years.
Lambda said it will pay the full cost of the power and grid infrastructure required to serve the facility through upfront financial commitments. The company said those commitments will apply even if project plans change, so the costs are not shifted to Alabama Power’s existing customers. Lambda and Alabama Power have also signed the White House Ratepayer Protection Pledge.
Stephen Balaban, Lambda’s co-founder and chief technology officer, said the company wants to understand what matters to Lowndes County residents and local leaders. “We’re committed to showing up as a good neighbor, keeping the lines of communication open, and building a relationship that lasts well beyond the project’s development,” Balaban said.
Water and community commitments
Lambda said the facility will use closed loop cooling technology designed to significantly reduce water use compared with traditional data center cooling systems. The company also plans to partner with N Drip to help local farmers conserve water and return at least as much water as the facility uses, according to the announcement.
The planned design includes setbacks, buffers, noise reduction measures and DarkSky lighting to limit effects on neighboring properties. Lambda also plans to use sight line modeling to guide building placement and respect the character of surrounding properties.
In partnership with Cloverleaf Infrastructure, Lambda is investing $10 million through a Community Benefits Agreement with the Central Alabama Community Foundation. The company said it will continue engaging residents and local leaders as planning advances, with more information about timing, design and expected impacts to be shared as it becomes available.
For Lowndes County, the project could bring long term employment, infrastructure investment and substantial funding for schools and public services. Those benefits remain tied to the project’s development plans, regulatory approval and the tax revenue projections described by Lambda and its partners.
