AI Cloud Provider Lambda Announces Plans to Build Data Center Campus in Alabama, Investing $33.1 Billion
Lambda plans to build a large-scale data center in Lowndes County, Alabama, expected to create over 1,000 construction jobs and generate billions in tax revenue.
US-based AI cloud company Lambda announced on November 4, 2026, plans to build a large-scale data center campus named "Red Clay Technology Center Campus" in Lowndes County, Alabama. The project, readied for development by Cloverleaf Infrastructure, represents an estimated $33.1 billion investment.
According to Lambda's announcement, the data center campus is expected to create more than 1,000 construction jobs during development and support at least 225 full-time roles upon operation. The project is projected to generate significant economic benefits for local schools and communities, with more than $2.8 billion in local tax revenue through 2049, including over $1.6 billion for Lowndes County Public Schools. Combined state and local tax revenue is projected to reach $3.4 billion.
To address community concerns about infrastructure burdens, Lambda committed to paying the full cost of the power and grid infrastructure required to serve the facility. Through upfront financial commitments, these costs will not be shifted to Alabama Power's existing customers even if project plans change. Both Lambda and Alabama Power have signed the White House Ratepayer Protection Pledge. Additionally, the facility will deploy closed-loop cooling technology to reduce water use and plans to partner with N-Drip to support local farmers in conserving water.
The project is currently in the planning stage, with construction expected to begin in the first quarter of 2027 and take up to five years. Power supply remains pending regulatory approval. Stephen Balaban, Co-founder and CTO at Lambda, stated that the company is committed to building strong relationships with the local community and ensuring resident perspectives inform their approach.