Applied Digital Invests $3.2 Billion in Alabama AI Data Center

Applied Digital is constructing the Delta Forge 2 AI data center in Brookwood, Alabama, as part of a $3.2 billion combined investment from the company and an unnamed U.S.-based hyperscaler tenant. The 1.26 million square foot campus will occupy 160 acres of a 1,300-acre site and is scheduled to begin operations in 2028.

The Tuscaloosa County Economic Development Authority unanimously approved an incentive package for the project, which includes approximately $314.5 million in tax abatements and a $270 million community benefits agreement spanning 20 years. The development is expected to generate roughly $131.5 million in education taxes, create 100 full-time positions, and support over 1,000 peak construction jobs.

Brookwood Mayor Joe Barger described the project as the largest industrial operation to enter Tuscaloosa County since Mercedes-Benz U.S. International. Justice Smyth of the Tuscaloosa County Economic Development Authority noted that the resulting education revenue was the primary driver for the board's approval.