BROOKWOOD, Ala. — A $3.2 billion AI data center is headed to Brookwood. Dallas-based Applied Digital announced on Sept. 24 that it will build Delta Forge 2, an artificial intelligence data center campus, on land it owns in the Tuscaloosa County city.
The campus will provide 210 megawatts of computing capacity for an unnamed U.S. hyperscaler, a large cloud and AI company the developer describes as highly rated investment grade. Construction is expected to employ more than 1,000 workers at its peak, and operations are set to begin in 2028.
What's being built
Delta Forge 2 will total about 1.26 million square feet on roughly 160 acres of a nearly 1,300-acre property. The 210 megawatts are critical IT load, the power that runs the computers themselves, and it is already under lease to the tenant. Applied Digital and its tenant together are investing more than $3.2 billion.
The campus will use a closed-loop cooling system, which recirculates the same water rather than drawing a steady new supply. Applied Digital did not release water use figures.
Birmingham engineering firm Kimley-Horn prepared the site plans, according to the Tuscaloosa Thread. The project's construction stormwater permit was approved on July 20. No general contractor has been announced.
Jobs and training
The build-out will be a big draw for the trades. Applied Digital says the construction workforce will top 1,000 at its peak, and the finished campus will employ more than 100 people full time. In August, Brookwood Mayor Joe Barger put the construction figure closer to 2,000.
The company says it will work with community colleges, local and state workforce groups and other partners to train electricians, HVAC technicians, welders and fiber technicians. Those are the same trades a data center leans on most, both during construction and once it is running.
The tax deal
In exchange for tax abatements, Applied Digital will pay $270 million over 20 years to the Tuscaloosa County Economic Development Authority. That money will be passed along to the local bodies whose taxes are being abated: the cities of Brookwood, Tuscaloosa and Northport, Tuscaloosa County, the Tuscaloosa County Road Improvement Commission and DCH Health System. Each will get a share based on its current slice of local tax revenue.
The company also projects about $131.5 million in education taxes over the same 20 years, along with ongoing sales, use and lodging taxes.
Power and water
Data centers draw huge amounts of electricity, and utility customers in many states have worried about footing the bill. Applied Digital says it will pay the full cost of serving its energy needs, so those costs are not shifted onto other Alabama Power customers.
Local concerns
The project has not been without friction. Before the announcement, residents pressed local leaders for answers and complained about the nondisclosure agreements that kept the deal quiet, the Tuscaloosa Thread reported in August.
The site sits near Brookwood Middle School, and Barger said the school may need to relocate, though the county school board had not yet discussed it. Barger said he had addressed residents' concerns about power use, water, noise and the school.
Construction runoff from the site drains into Hurricane Creek and on toward the Black Warrior River. Hurricane Creekkeeper John Wathen said the site is not a bad choice apart from the school, but he called for more transparency. He also questioned why the company bought about 1,300 acres to disturb roughly 137, suggesting the campus could grow.
Barger now says he expects Applied Digital to be a good neighbor and a long-term partner for the city.
Who's building it
Applied Digital was founded in 2021 and is based in Dallas. It designs, builds and operates data centers for AI and high-performance computing. Delta Forge 2 is the fifth campus in its "AI Factory" lineup, which totals about 1.4 gigawatts of contracted capacity, including two campuses in North Dakota.
CEO Wes Cummins said the company's success depends on the communities that host its campuses, and that it has a record of keeping its promises to them.
Timeline
Date | Milestone |
|---|---|
June 18, 2026 | Stormwater permit application received |
July 20, 2026 | Construction stormwater permit approved |
Sept. 24, 2026 | Applied Digital announces Delta Forge 2 |
2028 | Operations expected to begin |
What it means for contractors
A $3.2 billion, 210-megawatt data center is mostly an electrical and mechanical job. It calls for medium-voltage power, switchgear and substations, generators, large cooling plants, miles of fiber and a big site and civil package up front. With operations due in 2028, that work will be packed into a tight two-year window.
For west Alabama trades, the 1,000-plus peak workforce and the company's training pledge both point the same way: steady demand for electricians, HVAC and controls techs, welders and fiber crews. Firms interested in the work should watch for a general contractor announcement and bid packages as the project moves into full construction.