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- calendar_today November 7, 2026
Second Legal Challenge Targets Lowndes County Commission's Approval of Tax Break
The Lowndes County Commission is facing its second lawsuit over the approval of more than $2.7 billion in tax abatements for a proposed hyperscale AI data center, known as Project Red Clay. The lawsuit, filed Tuesday by the community group Protect Lowndes County and the Alabama Rivers Alliance, seeks to invalidate the tax breaks granted for what would be the largest data center development in Alabama.
Allegations of Open Meetings and Records Act Violations
Plaintiffs, represented by attorneys from the Southern Environmental Law Center and the Natural Resources Defense Council, allege that the commission violated Alabama’s Open Meetings Act and Open Records Act. According to the lawsuit, residents were misled about the timing and location of the meeting to consider the tax abatements. The commission is accused of informing the community that deliberations would occur on October 20, but actually considered and approved the abatements on October 13 in a 3-2 vote.
The suit further alleges that commissioners discussed the project without using their microphones, leaving members of the public unable to hear proceedings, and that public comment was arbitrarily limited, with speakers opposing the tax breaks cut off. Additionally, it alleges a failure to release public records related to Project Red Clay.
Concerns Over Community Participation and Transparency
Adrian Johnson, a member of Protect Lowndes County who lives next to the proposed data center site, stated, “We’re suing because Alabama law is clear—we have a right to be heard and have a role in this process.” Todd Gleason, senior litigating counsel for the Natural Resources Defense Council, echoed the need for transparency and meaningful public participation, regardless of individual stances on Project Red Clay.
Project Red Clay Details and Developer Commitments
The data center, planned for a 2,200-acre site in northeastern Lowndes County near U.S. 80 and Alabama 21, is expected to deliver 1,500 megawatts of power. San Francisco-based Lambda Inc. announced it will operate the facility and pledged to invest $33 million. Lambda and Alabama Power have signed the White House Ratepayer Protection Pledge, committing to prevent the costs of data center development from being passed on to ratepayers. The developers also plan to utilize a closed-loop liquid cooling system to reduce water consumption.
Cloverleaf Infrastructure, the Houston-based developer, stated that during construction, the project requested 100,000 gallons of water per day. This need is expected to decrease to levels similar to an office building after completion. The developers also pledged $10 million through a community benefits agreement with the Central Alabama Community Federation and plan to engage local residents and contractors for more than 1,000 construction jobs and 225 full-time operational positions.
Community and Environmental Concerns Persist
Opposition to the project includes worries about location, water use, and potential effects on electricity rates and the local water supply. The site’s proximity to the Selma to Montgomery National Historic Trail, a route significant to civil rights history, was noted by community leaders like Tom Gardner, pastor of Beulah Primitive Baptist Church, who emphasized the importance of public participation in governmental decisions.
The Natural Resources Defense Council highlighted that closed-loop cooling systems, while using less water, can still generate industrial wastewater and strain infrastructure—particularly concerning given that as many as 80 percent of homes in Lowndes County lack reliable sewage systems.
Previous Legal Challenges and Projected Economic Impact
This lawsuit follows a previous legal challenge in October by local residents over inadequate meeting notice for the same project. Despite the significant tax abatements, developers project over $2.8 billion in local tax revenue through 2049, with over $1.6 billion allocated to Lowndes County Schools.
Commissioner Charlie King Jr. and the superintendent of Lowndes County Schools have expressed support, citing opportunities for local jobs and community investments. As of publication, the commission’s general counsel, Prince Chestnut, had not commented on the lawsuit.
Source: alreporter.com.
