A decision regarding a new AI factory and data center project, set to go along Lakeshore Parkway in Birmingham, is temporarily on hold after neighbors raised concerns to city leaders.
Nebius is planning to build its facility at the old Regions Operations Center off Lakeshore Parkway. The company also has plans to build a substation that will be used to provide the massive amount of power the AI factory needs in order to run.
The public hearing by Birmingham’s Zoning Board of Adjustment, Thursday, was attended by many neighbors who say they don’t want to live near an AI factory or data center, citing concerns about how much power it will use, how loud it will be and how close it is to neighbors.
“Their site where they’re building is in the neighborhood, not in the industrial part,” one concerned resident voiced. “It’s in the corporate part for offices. It wasn’t put there for industry, it was for offices and now they want to tear down the offices and put in industry. We don’t want them in the neighborhood.”
Another concern was brought up by the Greater Birmingham Humane Society. Those with the organization say they might have to redesign their new planned facility if this is approved because they’ll have to protect the animals in the outdoor yard. They add this project is also spooking donors of the project because there are so many questions that remain.
“I am truly not even sure this campus is even going to happen anymore,” Allison Black Cornelius, GBHS’ Chief Executive Officer, said. “I’m watching it vaporize before my eyes. I’m just asking for time. I’d like to meet with them.”
Because there were still so many questions from neighbors and city leaders, they postponed any vote Thursday. The board is set to discuss the utility substation again in three weeks.
What’s happening in Alabama’s data center boom?
There are 31 data centers in the state, with the majority in Central Alabama, according to our Get the Facts Data Team. Dozens more sit in the Northeast, Georgia and Texas. Some facilities are already operating; others are still planned or under construction, including Project Marvel in Bessemer and Nebius AI Factory in Birmingham.
What’s the difference between a data center and an AI factory?
IBM describes a data center as a building housing infrastructure to run, deliver, store and manage applications and services.
NVIDIA says an AI factory is not like a traditional data center for general-purpose computing but is built for the entire AI lifecycle.
John Sutter with Nebius said, “In the grand scheme of things, these are both data centers, but this is not where your iCloud photos are.”
The AI company, Nebius, already owns a 75-acre parcel off Lakeshore Parkway that used to be Regions Operations Center. The clearing work has already begun as the company waits for the permits to start construction on what they call an AI factory.
Artificial intelligence involves a lot of data. The proposed AI factory would use 300 MW of power, enough to power tens of thousands of homes. But Nebius has plans to build a substation and switchyard so Alabama Power customers will not be impacted.
Sutter said, “Alabama Power has said that this will not increase or have any effect on rates. And we ensure that we pay our full cost of power.”
Ryan Anderson is an attorney with Southern Environmental Law Center. She said, “They’re going to need that power to come from a power plant, whether that’s a plant miller or a new methane-fired power plant, we don’t know. So just constructing a new substation next to the facility does not address the concerns about its power consumption.”
Anderson is concerned about the power draw and water consumption these AI factories and data centers demand. But Sutter said Nebius wants to partner with Birmingham and address any environmental concerns or worries residents may have. He said the factory will benefit the community, especially its schools. “There will be tens of millions of dollars annually in tax revenue associated with this facility. There’ll be hundreds of construction jobs associated with this facility. It’s about $88 million is what the city and the county schools will receive off this project.”
Anderson countered, “Communities shouldn’t have to choose between clean air and clean water and having a robust education system and a thriving economy. So, if that’s the choice that people are being asked to make, I think it’s an unfair one.”
