A $3.2 billion data center planned for Brookwood will generate hundreds of millions in tax revenue and other payments over the next 20 years, including about $131.5 million for schools, the Tuscaloosa Economic Development Authority says.
Applied Digital is building the data center, dubbed Project Headlines. Kayvens LLC will be the long-term tenant at the site.
“For our community, this project is about creating opportunities for local families, strengthening our schools and positioning Brookwood for the future,” said Brookwood Mayor Joe Barger. “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 estimated educational tax revenue includes about $101.6 million in property taxes and $29.9 million in sales and use taxes over 20 years. Additional educational tax revenue would be generated by equipment upgrades, added construction or project growth.
Community benefits payments — 20 annual payments of $13.5 million — will be shared by the city of Brookwood, the city of Tuscaloosa, the city of Northport, Tuscaloosa County, the Tuscaloosa County Road Improvement Commission and DCH Healthcare Authority.
The data center “reflects the model we are building across Applied Digital – repeatable AI infrastructure delivered at scale and built for the long term,” said Wes Cummins, chairman and chief executive officer of Applied Digital. “But our success also depends on the success of the communities where we operate.”
Construction is expected to begin in October, with completion by the end of 2028. The campus is expected to cover about 1.3 million square feet and create more than 100 permanent jobs.
