Nebius Targets Data Center Development in Birmingham, Alabama

Why It Matters

The Birmingham project adds critical AI‑compute capacity to the Southeast, creating jobs and increasing regional energy demand while highlighting regulatory hurdles for data‑center expansion.

Key Takeaways

• Nebius plans 300 MW Birmingham data center on 80 acres
• Acquisition cost totals $90 million for three Oxmoor sites
• Birmingham considering moratorium amid community opposition
• Project supports Nebius goal of 2.5 GW by 2026
• Major customers include Microsoft and Meta

Pulse Analysis

Nebius, a Nasdaq‑listed cloud provider spun out of Yandex in 2024, has quickly positioned itself as a specialist in AI‑intensive workloads. By leasing capacity across Europe, the Middle East and the United States, the company already operates sites in Finland, the UK, France, Israel, Iceland, New Jersey and Missouri, and is planning a self‑built facility near Kansas City. Its strategy hinges on delivering large blocks of GPU power to hyperscale customers such as Microsoft and Meta, while targeting 2.5 GW of contracted capacity by the end of 2026.

The Birmingham, Alabama project, filed under the BHM01 designation, will occupy roughly 80 acres in the Oxmoor district and is slated for 300 MW of power. Nebius secured the three parcels for a combined $90 million, intending to demolish the former Regions Lakeshore Operations Center and construct a purpose‑built data center. Local officials are weighing a moratorium on new facilities after backlash to a separate Bessemer proposal, raising questions about permitting timelines, community outreach, and the region’s ability to attract high‑tech investment.

Nebius’s move underscores a broader shift as AI‑driven cloud services fuel a surge in demand for high‑density, low‑latency infrastructure in secondary markets. If approved, the Birmingham site would diversify the company’s geographic risk and provide the Southeast with a critical node for AI training and inference workloads. Competitors such as Equinix and Digital Realty are also expanding into the region, intensifying competition for power contracts and tax incentives. The outcome will likely influence how municipalities balance economic incentives with community concerns in the era of exponential data growth.