$3.2 Billion AI Data Center Campus Announced in Brookwood - WBMA

$3.2 Billion AI Data Center Campus Announced in Brookwood

BROOKWOOD, Ala. (WBMA) — Brookwood is set to become the home of a new artificial intelligence data center campus representing more than $3.2 billion in investment, according to an announcement Thursday from Applied Digital.

The Dallas-based company said its previously announced Delta Forge 2 project will be located on approximately 160 acres of a nearly 1,300-acre site north of the 17,000 block of Brookwood Parkway. The planned campus is expected to include approximately 1.26 million square feet of data center space.

For Brookwood and the surrounding Tuscaloosa County area, the project is expected to bring new construction activity, jobs and a long-term stream of tax and community benefit payments.

According to a project fact sheet from the Tuscaloosa County Industrial Development Authority, construction is scheduled to begin October 1, 2026, with completion expected by December 31, 2028. Applied Digital expects construction employment to peak at more than 1,000 workers.

Once the facility is operational, the project is expected to support 101 full-time positions. The project fact sheet estimates approximately $129.5 million in payroll over 20 years.

Applied Digital previously announced a 210-megawatt critical IT load lease at Delta Forge 2 with a U.S.-based hyperscale company. The Brookwood facility will be the fifth campus in Applied Digital's AI Factory platform.

The project carries an initial capital investment of $3.2865 billion, according to the project fact sheet.

Over a 20-year period, the project is projected to generate approximately $170.7 million in taxes paid, while receiving approximately $314.5 million in total tax abatements. The projections include property, sales and use taxes and taxes associated with employees.

Applied Digital has also committed $270 million in community benefit payments to the Tuscaloosa County Economic Development Authority over 20 years. Those payments will be made in addition to educational tax contributions and are expected to provide revenue to local entities whose taxes are being abated, including the cities of Brookwood, Tuscaloosa and Northport and Tuscaloosa County.

The project fact sheet estimates that taxes paid and community benefit payments could total approximately $440.7 million over 20 years.

The development is expected to become the largest taxpayer in Brookwood's history, according to Applied Digital.

Brookwood Mayor Joe Barger said the project could have long-term implications for the community.

“For our community, this project is about creating opportunities for local families, strengthening our schools and positioning Brookwood for the future,” Barger said. “We anticipate that Applied Digital will be a good neighbor and a long-term community partner, and expect this $3.2 billion investment to benefit Brookwood residents for generations to come.”

The project also includes an estimated $173.8 million construction-period sales and use tax abatement, according to the project fact sheet. Approximately $29.9 million in sales and use educational taxes are projected during the same period.

Applied Digital said Delta Forge 2 is part of its broader effort to develop AI-focused data center campuses in multiple markets. Across its contracted portfolio, the company reports approximately 1.4 gigawatts of critical IT load under long-term lease agreements across five AI Factory campuses.

For Brookwood, the project will place a large-scale technology facility within the community while adding construction activity and a projected 101 permanent jobs once operations begin.

The announcement follows months of public concern about water use, noise, stormwater runoff and the size of the proposed development. Company officials say environmental protections are a priority.

“It’s very, very important to us that we do proper retention and we make sure we don’t impact negatively the environment,” said Nick Phillips, executive vice president for external affairs for Applied Digital. “That’s something that we take very, very seriously.”

Phillips said the company has discussed concerns about nearby Hurricane Creek and believes the project could potentially support improvements over time.

“We’ve had lots of conversations about Hurricane Creek,” Phillips said. “I think that there’s all sorts of things that we can do there to not only keep it as it is, but maybe even improve it over time with the help of other locals around here.”

Brookwood Mayor Joe Barger said he believes the economic impact will extend beyond city limits.

"I've had many people reach out, messaging me, phone calls, with great support for this project. They know the value and the transformation that this will bring to Brookwood and the future," said Barger. “The tax revenue impact from this opportunity and economic investment is greater than Mercedes to this day... we’re excited for our community. It ripples out and impacts Tuscaloosa County.”

Construction is currently scheduled to start in October, with the campus expected to be completed by the end of 2028.