Data centers power much of what we now consider part of daily life: emergency response systems, bank transactions, healthcare records and the cloud-based software businesses rely on.
They’re here to stay and they can play an important role in Alabama’s future. But if we’re going to be a positive force in this digital revolution, we’ve got to step up and compete in a fast-moving national race.
As chairman of the board of Associated Builders and Contractors of Alabama, I have witnessed firsthand how data centers help drive strategic infrastructure projects in our local communities.
They can catalyze backbone infrastructure and support targeted transportation improvements tied to growth. We can pursue these opportunities while also addressing concerns.
We should also acknowledge a simple reality: Alabama isn’t yet counted among the nation’s largest, established data center clusters—places like Northern Virginia, Dallas, Chicago, Phoenix and Atlanta that are frequently cited as major hubs. These business opportunities have landed in other states, but they don’t have to.
We can grow this sector with discipline while protecting communities as we compete.
What’s driving this moment? Data center growth is being accelerated by cloud services and artificial intelligence. Already, in 2023 data centers accounted for roughly 4.4% of the nation’s electricity use.
U.S. Department of Energy projections suggest that figure could rise to between 6.7 and 12% by 2028. That growth has prompted debate about grid capacity and cost—but it also signals a once-in-a-generation opportunity for states prepared to plan wisely.
Data centers are becoming a new kind of utility. They provide essential capacity that businesses, hospitals, schools and public safety systems run on.
We’ve got to plan for these large computing loads and the infrastructure to support them. When that capacity is constrained, it affects everything from business continuity to emergency response. Alabama shouldn’t sit on the sidelines while other states build the backbone of the next economy.
That means leading responsibly. Alabama must approach growth with a commitment to consumer protection, reliable service and long-term resource planning that safeguards ratepayers and communities alike. Planned growth ensures that economic development doesn’t come at the expense of residents, but instead benefits them.
Thoughtful coordination with utilities can ensure expansion strengthens the grid without placing unintended burdens on its users. Clear, consistent standards and predictable permitting processes give companies the certainty they need to invest at scale.
Sustainability must be part of that framework. That’s why Alabama should set clear expectations that projects use water-efficient designs, prioritize non-potable water where available, and provide transparency around anticipated water use along with local contingency plans.
We’re already seeing success with liquid-to-chip cooling, a closed-loop system designed to reduce water use. Clear standards don’t hinder growth; they provide clarity that attracts responsible, long-term investment.
Many have worked hard to create a business-friendly climate in our state,and maintaining momentum requires strong corporate citizenship and local partnership.
We’re already seeing investment: Google reports more than $1 billion invested in Alabama since the Jackson County data center was built. That’s a real demonstration of confidence in our business climate. The company also reports that its Grow with Google program has helped skill more than 137,000 Alabama workers and job seekers through digital-skills training partnerships. Those efforts can expand as Alabama’s tech economy grows.
Those investments are part of a broader trend. The Alabama Department of Commerce reports tech-sector output has surged 50% since 2018 and is projected to reach 5.3% of Alabama GDP by 2030. These projects generate substantial tax revenues for schools, roads and public services.
For instance, Meta’s Montgomery expansion is projected to yield $224 million in state taxes and $382 million in payroll over 30 years, according to state economic development projections.
This growth supports real, meaningful jobs for Alabamians. Like past technological innovations, AI will change some jobs as it continues to develop, but it will also create new opportunities. Data center campuses offer permanent on-site roles in operations, security, facilities management and more—positions that can number in the dozens depending on facility size.
They also support a broader ecosystem of long-term contractor, maintenance, security, logistics and equipment-support work. Construction alone employs thousands of workers, and those construction jobs matter.
They translate directly into paychecks for Alabama craft professionals and demand for Alabama suppliers. In a state with a deep bench of nationally recognized contractors, we understand the importance of these opportunities.
Data centers can serve as a foundation of the modern technology economy and catalysts for Alabama’s economic success for decades to come. Let’s embrace the future, secure jobs, generate revenue, drive innovation and ensure that this responsible growth is beneficial for all Alabamians.
With the right framework, Alabama can continue attracting transformative investment while protecting the interests of its residents.
Alabamians should be at the forefront of writing our nation’s next chapter.
Ed Hauser is the board chairman of the Associated Builders and Contractors of Alabama and a senior vice president at Birmingham-based Brasfield & Gorrie.
