Lambda to Develop $33.1 Billion AI Data Center Campus in Alabama

Lambda has announced plans to construct the Red Clay Technology Center in Lowndes County, Alabama, representing a $33.1 billion capital investment. The facility is designed for a 1,000-megawatt base capacity with potential expansion to 1,500 megawatts. Construction is scheduled to commence in the first quarter of 2027, with a five-year development timeline.

The project is contingent upon regulatory approval for power supply from Alabama Power. The developer has committed to funding all necessary grid infrastructure to insulate existing ratepayers from costs, adhering to established ratepayer protection pledges. Failure to meet a December 30, 2030, in-service deadline for the initial building will trigger a repayment obligation for granted tax abatements.

Local governance has approved a 20-year, 50% abatement on non-educational property taxes and specific sales taxes, while excluding school taxes from the incentive package. The agreement mandates strict operational standards regarding water usage, noise, and lighting. The project is expected to generate over 1,000 construction roles and 225 permanent positions, with binding local-hiring preferences included in the development framework.