‘Deeply disappointed’: Phillip Ensler blasts Lowndes County for data center tax breaks

NewsA "save our land" sign is seen in Lowndes County, where a massive hyperscale data center will start construction next year. (Eric Kiekeben/AL.com)AL.comBy Hannah Denham | hdenham@al.comAn Alabama legislator and candidate for lieutenant governor condemned a rural county government for approving tax breaks for a massive data center project west of Montgomery.State Rep. Philip Ensler, who is running on Democratic nominee for governor Doug Jones’ ticket, spoke out against the $1.1 billion in tax abatements that the Lowndes County Commission approved for Project Red Clay on Tuesday. “I am deeply disappointed that the Lowndes County Commission ignored the voices of residents and moved forward yesterday with approving a data center deal,” Ensler wrote on Facebook Wednesday morning. “I’ve heard from Lowndes County residents who’ve told me they plan to continue this flight with every legal tool they have. I’ll continue to stand with them.”Ensler and Jones have called for a statewide, yearlong moratorium on new data center construction to slow down and regulate the industry’s explosive, multibillion-dollar growth. As demand for AI data centers grows, more developers and companies are expanding from Alabama’s city centers into rural communities like Lowndes County and Hale County.State Rep. Phillip Ensler, D-Montgomery, and a candidate for lieutenant governor has met with communities in Lowndes and Mobile Counties about data center projects.John SharpEnsler emphasized that the data center issue isn’t partisan. Meanwhile, Sen. Tommy Tuberville, the Republican nominee running to replace Gov. Kay Ivey, has dialed back his support for data center development, calling for an end to tax breaks and other restrictions.Ensler and other state elected officials previously met with residents in Lowndes County, home to just 9,500 people, where residents are majority Black, one in four live in poverty, and sewage and infrastructure problems plague the community.“For months, I’ve joined residents in Lowndes County and listened to the same thing over and over: they want a say in what happens in their community,” he said. “They have real questions about their water, their farmland, their utility rates, and their quality of life. They have not gotten the answers or transparency they deserve. Yesterday’s decision by the Commission does not represent the will of the people.”Project Red Clay, backed by developer Cloverleaf Infrastructure, is one of roughly a dozen proposed data center sites across the state. Because of Alabama’s limited home rule, county governments have little ability to stop projects – typically the only thing they can vote on are requests for tax abatements.The Lowndes County Commission voted 3-2 to approve the tax abatements and project agreement with Cloverleaf on Tuesday morning. The meeting lasted 10 minutes, with no public comment period or discussion among the commissioners before their vote. Residents said there was confusion around the meeting time, and the agenda did not mention the vote on abatements.Cloverleaf boasted the project will be the “largest economic investment” in the county’s history, with plans to generate about $2.85 billion in local tax revenue over the next 20 years. That includes $70 million in revenue each year for county schools.“We believe the best developments are the ones that create lasting value for the communities where they are located,” said David Berry, CEO and co-founder of Cloverleaf, in a statement to AL.com. “Project Red Clay represents a significant investment in Lowndes County, and we are proud of the opportunity to contribute to the county’s economic future through new jobs, increased revenue, and direct investment in the community.”Hannah Denham is an investigative reporter, covering money, business and power in Alabama. She returned to her home state to join AL.com in Birmingham in 2023. She previously covered business and financial news...