As data center development continues to expand across Alabama, communities are weighing how to balance the industry’s economic potential with concerns about its impact on local infrastructure and neighborhoods.
Irondale is taking a different approach from several other municipalities in the state.
Instead of temporarily blocking new data center development through a moratorium, the city is moving forward with a proposed ordinance establishing rules for how those facilities could operate within city limits.
The measure is scheduled for a public hearing and a final vote before the Irondale City Council on Tuesday, Nov. 17. The meeting is scheduled for 6 p.m. at Irondale City Hall. Residents will have an opportunity to speak before the council considers the proposal.
“Moratoriums are put into place because individuals say that they don’t have enough information to be able to create a document or an ordinance,” Irondale Mayor James Stewart said. “We decided against that because we believe that we do have enough information to be able to develop an ordinance that will provide direction.”
What is a data center, and why are cities concerned?
Data centers are physical facilities that house computer servers and networking equipment used to store, process and distribute digital information.
They provide much of the infrastructure behind cloud computing, online services and artificial intelligence.
As demand for those services increases, so does the need for facilities capable of handling the computing power. That growth has attracted billions of dollars in potential private investment, but it has also created concerns about how much electricity and water the facilities require.
Cooling systems are needed to prevent servers from overheating, while large facilities can require significant electrical infrastructure to operate.
Those demands have prompted questions about whether new facilities could strain local utilities, increase costs for other customers, create noise for residents nearby and cause environmental damage.
According to a September report from AL.com, at least 17 Alabama municipalities had enacted temporary moratoriums on new data center development. Several others have opted to address the industry through zoning regulations.
What would Irondale’s ordinance require?
The proposed ordinance establishes three classifications of data centers based on their size and electricity demands: micro, medium and hyperscale.
The classifications would determine which development and operating requirements apply to a facility, with larger operations facing more stringent standards.
Among the proposal’s provisions:
- Electricity: Developers would be responsible for the cost of infrastructure improvements needed to support their facilities, including necessary electrical grid upgrades.
- Water: Data centers would be required to use closed-loop cooling systems, which recirculate cooling water rather than continuously drawing large amounts of fresh water from outside the facility.
- Noise: The proposed standards include a maximum of 50 decibels during daytime hours and 45 decibels at night, according to Stewart.
- Location: The ordinance establishes minimum setbacks from residential areas, with requirements varying based on the type of facility.
- Infrastructure: Applicants would have to demonstrate that adequate utility, transportation and emergency service capacity exists to support a proposed facility.
The proposal also addresses what happens if a facility permanently closes. Medium and hyperscale operators would be required to provide plans for removing equipment, addressing hazardous materials and restoring the property. The ordinance would also establish ongoing compliance requirements and give the city tools to inspect facilities and address violations.
Stewart said the goal is to address many concerns residents have raised in other communities before a project ever reaches the approval stage.
Setting the rules in Jefferson County
Through the Jefferson County Mayors Association, Stewart said he wants Irondale's efforts to establish a common regulatory framework that other municipalities could use as a starting point for adapting their own rules
Jefferson County has 36 municipalities, and Stewart said having vastly different regulations across those communities could create challenges for local governments and developers alike.
“If all 36 municipalities have a different ordinance, then I feel that we are not doing service to our community,” Stewart said.
He also would like to share the information with smaller cities, including communities in Alabama’s Black Belt, that may not have the resources or zoning regulations needed to address large-scale development.
Potential economic benefits for the city
Stewart said he sees an opportunity for data centers to provide additional resources to municipalities by incorporating a community benefit agreement into its approach, with the goal of ensuring developers contribute to the communities where they operate.
Stewart said municipalities are facing increasing costs while residents continue to expect high-quality public services without additional taxes or fees. He said properly regulated development could help bridge that gap.
The mayor emphasized Irondale is not actively recruiting data centers nor have developers have approached the city. He said the ordinance is intended to establish standards before any potential development is considered.
Public input will help shape the conversation
Stewart said the city has not received much direct feedback from residents about the proposal, although he has seen discussions on social media. The Nov. 17 public hearing will give residents an opportunity to voice their opinions before the council considers the ordinance.
The discussion comes after criticism of the city when it briefly promoted an event called “AI Love Irondale Day.”
Stewart said the event was intended to introduce residents to emerging technology through demonstrations and community activities. But he said the artificial intelligence branding began to take over the conversation.
"It was about fun, fellowship and the community coming out to enjoy themselves," Stewart said. "By putting those two letters in front of Irondale Day, it began to diminish the real purpose."
He acknowledged the public reaction influenced how he approaches conversations about AI, but said the city remains committed to educating residents about the technology.
For Stewart, a successful ordinance would mean establishing regulations that allow a data center to operate as a responsible business in the community without creating problems for the people who live there.
