Lambda, an AI cloud computing company, will build the planned Red Clay Technology Center Campus in Lowndes County.
The large-scale data center campus represents an estimated $33.1 billion investment in Alabama and is expected to support more than 1,000 construction jobs and generate $2.8 billion in local tax revenue through 2049.
The project is the largest economic development project in the county’s history, with combined state and local tax revenue projected to reach $3.4 billion through 2049, including more than $1.6 billion for Lowndes County Public Schools. Cloverleaf Infrastructure, which previously announced the project, readied the site for development.
“Lowndes County worked hard to secure this investment because we believe in what it will mean for our community’s future,” said Thomas Ellis, chairman of the Lowndes County Economic Development Commission.
“Project Red Clay will bring good-paying jobs, create opportunities for local businesses, and provide lasting resources to improve our schools, roads, and essential services. Most importantly, it will give Lowndes County the ability to shape its own future, make decisions based on our community’s priorities, and create opportunities for generations to come.”
Construction is expected to begin in the first quarter of 2027 and take up to five years. The campus is planned near U.S. Highway 80 and Alabama Highway 21, with final design details to be developed as planning progresses.
The project is expected to create more than 1,000 construction jobs and support more than 225 permanent roles in operations, technical, and support functions at full scale. Lambda said local residents and contractors will be considered for construction and operational opportunities in coordination with local partners.
To limit impacts on neighboring properties, Lambda said the development is planned with setbacks, buffers, noise-reduction measures, and DarkSky-compliant lighting. Sight-line modeling will guide building placement to respect surrounding properties.
The facility will use closed-loop cooling, which reduces water use compared with traditional data center cooling systems. Lambda also plans to partner with N-Drip to support local farmers in conserving water, working with the community to return at least as much water as the facility uses.
The project will be powered by Alabama Power, pending regulatory approval, and Lambda will pay the full cost of the power and grid infrastructure required to serve the facility through upfront financial commitments to prevent those costs from being passed on to Alabama Power’s existing customers. Both companies have signed the White House Ratepayer Protection Pledge.
Lambda and Cloverleaf are also funding a $10 million Community Benefits Agreement with the Central Alabama Community Foundation. In addition to that agreement, Lambda says it has already identified potential areas where it could provide additional community support, including weatherization assistance and wastewater infrastructure. The company said it plans to meet with local residents and officials in the coming months to discuss these priorities.
Project Red Clay has faced community opposition in recent months, with residents questioning whether projected economic benefits will outweigh the project’s impact on the region’s resources and character. Some local residents have called for greater accountability and access to information about the project’s environmental impacts, financial arrangements, and long-term costs to the community.
Stephen Balaban, Lambda’s co-founder and chief technology officer, said the company intends to maintain communication with residents and leaders. “We’re committed to showing up as a good neighbor, keeping the lines of communication open, and building a relationship that lasts well beyond the project’s development.”
“We take seriously our responsibility to develop this project thoughtfully, with respect for local resources, existing infrastructure, and community priorities,” said Lambda’s Chief Executive Officer, Michel Combes. “That responsibility will guide our approach as the project moves forward.”
Lowndes County Public Schools stands to receive a significant portion of the long-term tax revenue from Lambda’s project, which is projected to amount to approximately $63,000 in annual school revenue per student in Lowndes County.
Samita Jeter, superintendent of Lowndes County Public Schools, welcomed the investment into the county’s education system.
“More than $1.6 billion in project revenue for local schools is a significant, long-term investment in the educational future of Lowndes County,” she said.
“It will give our district resources to strengthen school facilities, expand career and technical education, and support the students, teachers, and staff we serve. We also see an opportunity to explore new incentives to attract and retain highly qualified teachers in Lowndes County. Investing in our educators is one of the best investments we can make in our students, and this project has the potential to help us build a stronger school system for generations to come.”
Lambda said the project’s design, timing, and expected impacts will be refined as planning advances, with further information to be shared with residents and local leaders.
Evy Gallagher is the managing editor for Yellowhammer News. You can reach her at [email protected]
