November 10, 2026 · Brendan Hogan, Founder, GridPermit

Lambda's $33 Billion Data Center Could Remake Alabama's Poorest County. Two Lawsuits Say the Commission Broke the Law to Approve It.

A pastor whose church sits 100 feet from the site says it's no accident the Black Belt got picked. Two lawsuits now ask a judge to undo the vote behind Alabama's largest-ever single investment.

Tom Gardner's church sits close enough to the tree line that he can point to where the fence will go. Beulah Primitive Baptist Church is about 100 feet from the edge of a 2,200-acre tract in Lowndes County, Alabama, where a company called Lambda wants to build one of the largest data center campuses in the country. Gardner is the church's pastor, and he's also a plaintiff in one of two lawsuits now trying to unwind how the county approved it. He doesn't think the location is an accident. "I don't think it's an accident this developer came to Alabama's Black Belt," he said. The stretch of U.S. Highway 80 that runs past his church is the same road Viola Liuzzo was driving on in 1965, ferrying marchers back from Selma, when she was shot and killed. Lowndes County is still, six decades later, one of the poorest counties in the country.

The deal itself is not small, and it's not fake. Lambda announced on November 4th that it plans to build the Red Clay Technology Center Campus on land prepared for development by Cloverleaf Infrastructure, an estimated $33.1 billion investment -- filings describe it as a 1,500-megawatt facility, capped at 2,200 acres unless the county agrees to more. The company says the project will generate over 1,000 construction jobs, more than 225 permanent ones, and upward of $2.8 billion in local tax revenue through 2049, including $1.6 billion earmarked for Lowndes County's public schools. Combined state and local revenue projections run to $3.4 billion over that same stretch. For a county with roughly 10,000 residents and a tax base this thin, those are not rounding errors. They're close to the whole budget.

A county placing the biggest bet in its history

Local officials who support the project describe it in exactly those terms. Thomas Ellis, who chairs the county's economic development commission, has called it a chance to pay for schools, roads, and the kind of essential services a county this poor has had to go without. Commissioner Charlie King Jr., who chairs the county commission itself, has pointed to Lambda's commitment to hire qualified county residents and contractors first -- a pledge that matters more here than it would almost anywhere else, in a county where good-paying construction work has been scarce for a long time. Alabama Power is slated to supply the electricity, though final design and regulatory approval for that service are still outstanding. Lambda says the campus will run on closed-loop cooling and has structured a partnership intended to return at least as much water as the facility uses -- a claim that, so far, traces back to a single report rather than independent verification.

Two lawsuits over how the yes vote happened

What's contested isn't whether the county wants the investment. It's whether the commission followed its own rules in saying yes to it. On October 13th, commissioners voted 3-2 to approve what's reported as roughly $1.15 billion in local tax abatements -- a 50% reduction in county non-educational property taxes, plus specified construction and equipment sales taxes, running 20 years. A separate advocacy release puts the total incentive package, state money included, at more than $2.7 billion; the two figures haven't been reconciled in any public reporting I've seen, and that gap alone is worth someone in county government clearing up on the record. Residents say they'd been told the vote would happen October 20th. The commission took it up and passed it a week earlier instead.

That discrepancy is the basis of the first lawsuit, filed October 18th, which challenged whether the public got adequate notice of the meeting where the abatements were decided. The second, filed November 3rd by Protect Lowndes County and the Alabama Rivers Alliance, represented by the Southern Environmental Law Center alongside NRDC attorneys, goes further. It accuses the commission of misleading residents about when and where meetings would actually take place, failing to use microphones so the public in the room could hear what was happening, and cutting off speakers who showed up to oppose the tax breaks. "We refuse to stand by and allow our government to ignore the law and cut the public out of the process," said Adrian Johnson, a Protect Lowndes County member who lives next to the site. A judge has already denied the plaintiffs an emergency order halting further action; the underlying claims about whether the commission actually broke the Open Meetings Act are still unresolved.

I think Gardner's framing deserves to be taken on its own terms rather than waved off as rhetoric. A siting process that residents say sidelined the public isn't a neutral administrative hiccup in a county with Lowndes's specific history; it's a recognizable pattern repeating itself on the same highway. That doesn't make the investment itself illegitimate. It does mean the county owes its own residents a cleaner answer than two competing dollar figures and a meeting that moved up a week without, by the plaintiffs' account, anyone outside the commission knowing it had.

What the $33.1 billion number doesn't guarantee

Here's the part a press release won't tell you, and the part GridPermit's own Kill Test exists to surface. The incentive agreement reportedly sets its job and investment thresholds below the headline figures in Lambda's own announcement -- meaning the tax abatement obligates the county to give something up without obligating Lambda to actually deliver $33.1 billion or 225 jobs. If the project lands smaller, the abatement doesn't automatically shrink with it. Alabama Power's final design and the regulatory approvals behind it are still pending, not finished, which means the power half of this deal is a plan, not yet a contract. And the water-return partnership Lambda has described publicly rests on a single sourced claim that nobody outside the company has independently confirmed. None of that means the project collapses. It means the $33.1 billion figure everyone is arguing over, for and against, is still a projection with a press release attached to it, not a locked commitment -- and the difference between those two things is exactly where a diligence process earns its keep.

What happens next runs on two separate clocks that don't care about each other. Construction is supposed to start in early 2027 regardless of how the lawsuits resolve, unless a judge intervenes first. And the county's own history on this highway means the fight over whether residents got a real say is never going to read as a procedural footnote here, however the litigation comes out. Lowndes County may genuinely need this money more than almost any county in the state needs anything. Needing the money and getting a lawful, transparent vote on how to take it are not the same requirement, and so far only one of the two has been tested in court.

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