What did Lowndes County approve?
On October 13, 2026, the Lowndes County Commission voted 3 to 2 to approve two agreements for Project Red Clay, a planned AI data center campus near U.S. 80 and Alabama Highway 21. Yellowhammer News The first is a development agreement that sets building rules for the site. The second grants an abatement for 20 years. An abatement is a reduction in taxes the owner would otherwise owe. The developer is Cloverleaf Infrastructure, acting through an affiliate called Sandstone Cliffs DevCo LLC. Developer packet
The meeting agenda included a resolution to schedule a special meeting later in October to consider the abatement. One commissioner moved to vote on the abatement itself instead, and it passed. The Lowndes Signal
What the abatement covers
The abatement cuts in half the county taxes that are not set aside for schools. It applies to property tax on the campus. It also applies to sales and use tax on construction materials and on the new servers that replace old ones over time. Developer packet School taxes stay at the full rate, because Alabama’s rules say taxes used for education cannot be abated. Alabama Administrative Code
The server part matters more for an AI data center than for a factory. For most plants, replacement equipment does not qualify for a new abatement. For a data processing center, Alabama’s rule lets replacement and refresh equipment bought during the abatement period qualify. Alabama Administrative Code
The developer’s model, based on projections from the county’s economic development commission, says the county will not collect about $1.15 billion and will still collect about $2.85 billion from 2027 through 2049. Residents opposing the project estimate the tax break at $2.4 billion. WSFA
The 20 year length was a choice. The Alabama Department of Revenue says data processing centers granted an abatement before January 1, 2027 can receive up to 30 years. A 2026 act changes the rules for abatements granted on or after that date. Alabama Department of Revenue
What the developer commits to in return
The developer must place the first building in service by December 30, 2030. Placed in service means the building is finished and in use. If that date passes, the company repays the county and state taxes it was excused from up to that point. Developer packet
The investment and jobs terms are weaker. The company agrees to make commercially reasonable efforts to invest at least $16 billion within seven years and to add 125 full time jobs within ten years. That wording means the company must try in good faith. It does not guarantee the result.
The abatement also ends if the property stops being used for its approved purpose for six months in a row. That limit comes from the state’s own rule. Alabama Administrative Code The company must file the agreement, resolution and application with the Department of Revenue within 90 days of the grant. Alabama Administrative Code For an October 13 grant, that filing is due by January 11, 2027.
| Item | Before the approval | After the approval |
|---|---|---|
| County property tax not for schools | Full rate | Half rate for 20 years |
| School taxes | Full rate | Full rate |
| Sales tax on construction and new servers | Full county rate | Half the county rate not for schools |
| First building not in service by 2030 | No repayment duty | Company repays the abated taxes |
| Site stops operating for six months | Not applicable | Abatement ends |
What the lawsuit asks a court to do
Two Burkville residents who live next to the site sued the commission in Lowndes County Circuit Court on October 18, 2026. They claim the vote broke the Open Meetings Act, the state law that requires government bodies to discuss and decide their business in public. The Lowndes Signal The complaint says the three commissioners who voted yes met in smaller groups that together made up a majority of the commission.
One commissioner who voted no swore in an affidavit that the resolution sent to him before the meeting did not mention the project or the abatement. The residents ask for an injunction, which is a court order. It would stop the commission from taking any new or confirming vote on the project while the court decides whether the October 13 vote was lawful. They also seek civil penalties and court costs.
The state’s abatement law requires the county to adopt a resolution granting the abatement and to sign a written agreement with the company. Alabama Department of Revenue The lawsuit argues that proper notice and open discussion are conditions of a valid grant. If a court agreed, the abatement agreement would rest on a resolution the court had found invalid.
No ruling on the injunction has been made. The circuit judge recused himself, and the case is waiting for another judge to be appointed. The commission met on October 20 and approved the minutes of the October 13 meeting. The Lowndes Signal
Tomorrow’s topic
The Pennsylvania PUC’s proposed rules for curtailing AI data centers in grid emergencies.