AI data center sites in Alabama

The strongest Alabama counties for a large AI load are Jefferson County (64), Mobile County (64) and Autauga County (62) on the site score. Alabama sits in utility territory; EIA lists 1.9 GW of planned generators there, and it has 23 substations at 345 kV and up.

Industrial power averaged 7.9¢/kWh (EIA, July 2026 YTD), against 7.8¢/kWh a year earlier, the 15th lowest of the 50 states and DC. Alabama has a data center sales and use tax exemption in force. We track 1 AI campus and 4 GPU-ready colocation facilities here.

Alabama data processing center tax abatement (Code of Ala. 40-9B-3, 40-9B-4, 40-9B-4.1, as amended by 2026 HB 399)

Local and state non-educational sales and use taxes on capitalizable property and services for a qualifying data processing center (at least 20 new jobs averaging $40,000 or more in total compensation), including servers, cooling and power infrastructure, may be abated for 10 years where investment is $200M or less, and, for abatements granted from January 1, 2027, for 20 years above $200M, with up to 10 more years (30 total) under an approved community investment agreement; for centers of 100 MW or more granted abatements from 2027, state sales tax on building materials and power infrastructure is abated only until the property is placed in service (computing and cooling equipment remain eligible for the full term, and the Governor may extend the full abatement in targeted counties); local education taxes are not abated, and no application may be filed after July 31, 2032.

Recent change: 2026 HB 399 (effective June 1, 2026; listed as enacted April 17, 2026) capped new abatements at 20 years from January 1, 2027 (30 years with a community investment agreement), limited state sales and property tax abatements for centers of 100 MW or more, and extended the application deadline from July 31, 2028 to July 31, 2032.

Source: Alabama Legislature, 2026-04-09. General information, not tax advice; ask your tax advisor.