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The Data Center Divide

Lowndes County

Pro-Data Center Policies

Lowndes County’s enacted project deal offers major tax breaks while setting noise, water, lighting, and setback rules and requiring county approval for expansion.

Incentives

Tax benefitsLand discountsFee waivers

For Sandstone Cliffs DevCo LLC's Project Red Clay, the agreements grant tax abatements, waive any fees or costs related to the abatements, and provide water-service easements at no cost to the Company.

current law · Project Red Clay site outside city limits; state law governs the tax abatements and contract.
Authorizes Lowndes County to execute proposed development and tax-abatement agreements for Project Red Clay, a data-processing-center campus by Sandstone Cliffs DevCo LLC with estimated investment of approximately $33 billion, on a site capped at 2,200 acres without County consent.Lowndes County Project Red Clay Development Agreement and Tax-Abatement Agreement

What this means

The package offers major tax breaks, including 50% of local noneducational property and construction taxes, and limits the County’s ability to impose stricter zoning or project-specific fees while the center operates. It also requires noise, lighting, water, and setback standards, but these protections are unlikely to outweigh the strong financial incentive to build and expand.

People behind it

  • Company that proposed Project Red Clay and requested the tax abatements and project agreements.

  • Prepared and presented the developer materials on behalf of Sandstone Cliffs DevCo LLC.

  • Negotiated the proposed agreements and placed them before the Lowndes County Commission for consideration.

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  • Governmental body responsible for approving and executing the Project Development Agreement and Tax Abatement Agreement.

  • Administers state tax-abatement documentation, including issuing the Sales and Use Tax Certificate of Exemption and reviewing qualifying property.

  • Receives the abatement agreement and participates in valuation and assessment of project property during the abatement period.

Restrictions & requirementsHide restrictions & requirements17
  • The project site is limited to 2,200 acres in Lowndes County unless the County gives prior written consent to exceed that limit.

  • Buildings, parking, and mechanical equipment must meet minimum setbacks: 150 feet from Highway 21, generally 500 feet from residential property lines, and 200 feet from other property lines. The residential setback may be reduced to no less than 300 feet only when 500 feet is not feasible and enhanced buffering is provided.

  • The project must provide planted road and residential buffers, including trees, evergreen screening, and berms. A 100-foot road buffer and generally a 200-foot residential buffer with an 8-foot berm are required; reduced residential setbacks require a 10-foot berm and twice the standard planting density.

  • Perimeter fences may not exceed 12 feet, and barbed or razor wire is prohibited within setback areas.

  • Exterior lighting must comply with dark-sky and shielding requirements, remain below specified illumination limits at property lines, use a maximum 3,000K color temperature, use 2,700K lighting within 300 feet of residences, and reduce nonessential nighttime lighting when practicable. Temporary safety and security lighting is exempt from the illumination limits.

  • Facility-attributable noise may not exceed 55 dBA at existing residential property lines or 65 dBA at other property lines and rights-of-way, 24 hours per day. The project must conduct baseline, design-modeling, and post-construction noise studies, with specified measurement procedures. If existing ambient noise already exceeds the limit, the project may not increase it by more than 5 dB.

  • Generator testing is limited to weekdays from 9:00 a.m. to 5:00 p.m. Central Time and must comply with property-line noise limits. Emergency generator operation is exempt from the testing-hour restriction but must be documented.

  • The project must use water-efficient cooling, prioritize non-water or closed-loop systems, comply with daily water-use limits and minimum billing requirements established with the applicable utility, and fund required water infrastructure improvements, including excess capacity for the utility.

  • Construction and long-term access must primarily use Alabama Highway 21 and U.S. 80. County Road 37 may not be used for construction without the County's written consent, except for limited construction of an emergency access road; the Company must also fund necessary off-site traffic improvements identified in a traffic impact study.

  • The Company must comply with applicable federal, state, and local permits, land-use regulations, building and environmental laws, and air-quality and wastewater requirements. The County may require materially complete permit applications and related decisions within the applicable process, with the agreement stating that permit decisions should generally be made within 60 days.

  • The Company must record the development standards as a covenant running with the land by the placed-in-service date, binding owners and users for as long as a data processing center operates on the site.

  • The Company must maintain compliance records and certifications, provide them to the County after the project is placed in service, submit to review by a qualified professional selected by the County, and remedy temporary violations within 30 days of written notice when commercially practicable.

  • The Company must use commercially reasonable efforts to maintain at least 15% participation by socially or economically disadvantaged individuals or business concerns, prefer County contractors and subcontractors for construction and refreshes, and prefer County residents for operational employment, subject to quality, price, and merit qualifications.

  • The Company must use commercially reasonable efforts to invest at least $16 billion within seven years after the placed-in-service date and hire at least 125 net new full-time County employees within ten years after that date.

  • The first data center building must be placed in service by December 30, 2030, subject to extensions for qualifying delays caused by the County or third parties. If the deadline is missed after final judicial determination, the Company must repay County taxes actually abated through the deadline.

  • The tax abatements terminate if the project stops operating as a data processing center for more than six consecutive months after the placed-in-service date.

  • Future additional projects or major additions are not automatically covered by the agreement's abatements; they require a properly prepared application and County consideration, and the County is not obligated to grant additional abatements.

Benefits & exceptionsHide benefits & exceptions16
  • The County grants a 20-year abatement of 50% of local noneducational property taxes for qualifying Project property, while educational taxes remain payable in full. The abatement is limited to the statutory period and ends if the facility stops operating as a data processing center for more than six consecutive months. 20-year

  • The County grants a 50% abatement of local noneducational construction-related sales and use taxes, plus the abatable portion of State construction-related taxes, for qualifying Project acquisitions and taxable services during the abatement period. Educational taxes and the specified State Alabama Development Fund portion are excluded. fifty percent (50%) of all local noneducational construction related transaction taxes

  • The County grants an abatement of mortgage and deed recording taxes for Project-related mortgages, deeds, and documents, subject to applicable law and the agreement's term. Mortgage and Deed Recording Tax Abatement

  • The tax abatements apply broadly to qualifying Project real and personal property, including buildings, computers, software, cooling systems, power infrastructure, generators, batteries, and related equipment. The agreement states that estimated investment and abatement amounts are not caps, so qualifying investment above the estimate can remain covered to the extent legally permitted. abatements not limited by estimates

  • The agreement permits future investment in additional data-center projects or major additions to be considered for abatements and requires the County to negotiate in good faith and process a properly prepared abatement application, although it does not guarantee that the County will grant additional abatements. negotiate with the Company in good faith

  • The County must cooperate with and assist the Company in obtaining, monitoring, and renewing required permits and approvals, including permits issued by other government agencies, and must use its best efforts to have materially complete permit applications decided within 60 days, subject to applicable law. no longer than sixty (60) days

  • The County will provide a Local Project Coordinator to help coordinate development, construction, startup, communications, permitting, and the County's obligations. The coordinator must be approved by the Company in its reasonable discretion. Local Project Coordinator

  • The County will not require building inspections or inspection or permit fees for the Facility because it does not currently provide building inspection services. will not require any building inspection

  • If the County later receives zoning authority and adopts zoning, it must continue to allow data-center activity on the Project Site on terms no more restrictive than the agreed standards while a data center operates there. The County also agrees not to impose zoning restrictions that prevent the facility's ownership or operation during the agreement's term, to the extent legally permissible. continue to permit data center activity

  • The County agrees not to impose new project-specific business-license or similar fees, utility gross-receipts taxes, or franchise taxes on the Company or its affiliates at the Project Site, and agrees not to support annexation of Project land into city limits, to the extent legally permissible. not impose or attempt to impose

  • At the Company's expense, the County will support efforts to obtain sufficient water and sewer service, grant necessary easements over County property or existing County easements at no cost to the County or Company, and support water infrastructure improvements with capacity for the Project and future utility needs. grant easements

  • The County will assist the Company in obtaining municipal garbage and waste-collection services for the Project Site during the agreement's term, with the Company paying the service costs. garbage/waste collection services

  • The Project Site may include additional contiguous tracts acquired or leased by the Company or an affiliate, up to 2,200 acres without County consent; exceeding that acreage requires the County's prior written consent. The tax agreement also allows the Company to amend the site exhibit to add property, subject to written notice. shall not exceed 2,200 acres

  • The Company may assign the agreements to an end user or affiliate without County consent if the assignee assumes the obligations in writing and provides evidence and contact information to the County. The Company may also pledge its rights under the agreements to lenders and transfer them in connection with foreclosure or other lender remedies. may assign this Agreement

  • The placed-in-service deadline is automatically extended for actual delays caused by the County or third parties beyond the Company's reasonable control, including reasonable remobilization and rescheduling time, provided the Company gives notice and mitigates the delay. automatically extended

  • The Company may develop the Project in the order, timing, and pace it chooses and is not required to develop every portion of the Project, allowing phased construction and expansion decisions based on market and operational conditions. sole and absolute discretion

Sources

current law · Unincorporated areas; county leaders still need state legislative approval.
The Lowndes County, Alabama Commission unanimously passed a resolution supporting legislation to grant county planning and zoning authority at its August 24, 2026 meeting, following resident opposition to Project Red Clay.Lowndes County Commission Resolution to Seek Planning and Zoning Authority (August 2026)

What this means

The deal strongly encourages this project with more than $1.1 billion in tax breaks. It also sets binding rules for noise, water use, lighting, setbacks and backup generators, and limits expansion without county approval, so the incentives come with meaningful conditions.

People behind it

  • Lowndes County Commissioner; introduced the resolution.

Restrictions & requirementsHide restrictions & requirements1
  • Seeks general planning and zoning authority that could enable future land-use regulation; approval from the Alabama Legislature is required. This is not an operative data-center restriction.

Sources

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