$2 Billion Tax Incentive Plan for Nvidia-Backed Data Center Sparks Controversy in Lowndes County, Alabama

A $2 billion tax incentive plan for a data center developer backed by Nvidia is nearing approval in Lowndes County, Alabama. The project, known as Project Red Clay, would be built on land half a mile from a campsite where voting rights marchers slept on their way from Selma to Montgomery in 1965.

The site is part of the National Historic Trail and has significant historical importance, as it was used by Dr. Martin Luther King Jr. and other civil rights leaders during the famous march.

Lowndes County residents have expressed concerns about the project, citing the potential environmental impact and the fact that the county's poverty rate is 25%, with 9,359 residents living below the poverty line.

Cloverleaf Infrastructure, the developer behind Project Red Clay, has not requested any abatements or incentives from the Lowndes County Commission. However, a law signed by Governor Kay Ivey in April reduces the standard maximum data center abatement from 30 years to 20 for deals granted on or after January 1, 2027.

U.S. Senator Tommy Tuberville has promised to end tax breaks for data centers and to back communities that turn down these projects. In response to criticism, Commissioner Charlie King Jr., who also serves as vice chairman of the Lowndes County Economic Development Commission, pledged to oppose any 30-year abatement for a data center.