Lambda announces plans for $33.1 billion data center campus in Lowndes County

Lambda announced plans Wednesday to build a data center campus in Lowndes County, an estimated $33.1 billion investment that the company said would create more than 1,000 construction jobs and support more than 225 full-time jobs.

The proposed Red Clay Technology Center Campus would be built near U.S. 80 and Alabama 21 at a site Cloverleaf Infrastructure has been preparing for development. Lambda expects construction to begin in the first quarter of 2027 and take up to five years. Alabama Power would supply electricity to the campus, pending regulatory approval.

Cloverleaf previously projected the project would generate more than $2.8 billion in local tax revenue through 2049, including more than $1.6 billion for Lowndes County Public Schools. The company projected $3.4 billion in combined state and local tax revenue over the same period.

Lambda said it would work with local partners to identify jobs for county residents in operations, technical and support roles, as well as opportunities for local contractors during construction.

“Building a successful project starts with building strong relationships in the community,” Stephen Balaban, Lambda’s co-founder and chief technology officer, said. “We want to understand what matters to Lowndes County residents and local leaders and ensure those perspectives inform our approach.”

Lambda said it would make upfront financial commitments to cover the full cost of the electricity and grid infrastructure needed to serve the campus. The company said those commitments would apply even if its plans change and are intended to keep those costs from being passed on to existing Alabama Power customers. Both companies have signed the White House Ratepayer Protection Pledge.

Lambda said the campus would use a closed-loop cooling system that uses less water than traditional data center cooling systems. The company also plans to work with N-Drip to help local farmers conserve water, with the goal of returning at least as much water as the campus uses.

The company said it plans to use setbacks, buffers, noise-reduction measures and DarkSky lighting to limit the campus’s effects on nearby properties. It also plans to model how the buildings would look from surrounding properties to guide their placement. Final design details are still in development. Lambda said it would comply with the county’s Project Red Clay development agreements.

Lambda and Cloverleaf are investing $10 million through a community benefits agreement with the Central Alabama Community Foundation. Lambda said community input would help determine how the money is used.

Thomas Ellis, chairman of the Lowndes County Economic Development Commission, said the project would bring jobs and opportunities for local businesses and help pay for schools, roads and essential services. Lowndes County Commissioner Charlie King Jr. said Lambda’s commitment to hiring qualified county residents and contractors would create opportunities for local workers and businesses.

Samita Jeter, superintendent of Lowndes County Public Schools, said the projected tax revenue could help the district improve facilities, expand career and technical education programs and explore new incentives to recruit and retain teachers.

Lambda said it would continue meeting with residents and local leaders and release more information about the campus as planning progresses. Additional information is available on the Project Red Clay website.