QUICK SUMMARY
A state environmental permit has revealed that Applied Digital Corporation, a Dallas-based developer of AI infrastructure, is behind a proposed 2-million-square-foot data center in Brookwood, Alabama — a project that would be one of the largest buildings in Tuscaloosa County. The company owns nearly 1,300 acres along Brookwood Parkway, and its approved stormwater permit anticipates construction finishing by the end of 2028 — though Applied Digital says no final decision has been made. The project has stirred controversy over months of secrecy, its proximity to Brookwood Middle School, and runoff into federally protected Hurricane Creek. For homeowners, national research on data centers and home values is mixed: nearby values usually hold steady or grow, but land demand, rental demand and buyer sentiment can all shift. Here is everything we know.
What exactly is being built in Brookwood, Alabama?
According to a 102-page construction stormwater permit filed with the Alabama Department of Environmental Management (ADEM) and first reported by the Tuscaloosa Thread, the proposed facility is a roughly 2-million-square-foot industrial building on land around Brookwood Parkway in eastern Tuscaloosa County, with an initial land disturbance of 136.89 acres. County GIS records show the developer owns just under 1,300 total acres in Brookwood.
To put 2 million square feet in perspective: that is comparable to the body shop at the nearby Mercedes-Benz U.S. International plant, and it could hold nearly eight Tuscaloosa County High Schools. The permit — numbered ALR10C8B4 — was received June 18, 2026, and approved effective July 20, 2026. It anticipates construction beginning almost immediately and finishing by the end of 2028, with plans prepared by Birmingham engineering firm Kimley-Horn.
One important caveat: the permit is approved, but the project is not officially announced. After the report was published, Applied Digital told the Thread it “continually evaluates potential sites in many locations” and that “no decision has yet been made” on whether to proceed in Brookwood.
Who is Applied Digital, the company behind the project?
Applied Digital Corporation is a Dallas-based company that designs, builds and operates large data-center campuses — what it calls “AI Factories” — and leases them to major technology companies. The Brookwood permit lists APLD BHM-01 LLC as the applicant, an Alabama LLC formed in April 2026 with Applied Digital president and co-founder Jason Zhang as the responsible official.
The company has a pattern of quiet land assembly before big announcements. Before breaking ground on a $3.6 billion campus in central Louisiana earlier this year, it described the site only as a “strategic southern U.S. market.” In June 2026, it announced a fifth AI Factory campus in an undisclosed new southern state — though it has not confirmed that means Brookwood.
Why is the Brookwood data center controversial?
The controversy is less about what is being built than how it has been handled. Key friction points:
1. Months of secrecy. Residents pressed local leaders for answers for months while city officials neither confirmed nor denied a data center was coming. The permit itself never uses the words “data center” — it is filed as “Brookwood, AL Industrial,” with “Brookwood, AL Data Center” appearing only in engineering appendices. Brookwood’s mayor has acknowledged nondisclosure agreements surround the project.
2. Proximity to Brookwood Middle School. The site sits near the school — and Mayor Joe Barger has said the “outdated and overcrowded” school may have to be relocated, pending conversations with the county school board. He insists there is “zero risk to our children.”
3. Hurricane Creek runoff. Construction runoff will drain into Hurricane Creek — a federally protected waterway with strict pollution limits — before flowing to the Black Warrior River. ADEM designated the site a “priority construction site” discharging into a priority watershed. Longtime Hurricane Creekkeeper John Wathen, who flew over the property with watchdog group SouthWings, said the location itself is not bad “with the exception of the middle school” — but that whatever happens “has to be done with transparency.”
4. The 1,300-acre question. The current permit disturbs only about a tenth of Applied Digital’s land. Wathen and others ask the obvious question: why buy 1,300 acres unless you intend to expand? Residents’ concerns about long-term power usage, water consumption and noise remain largely unanswered until the company formally announces its plans.
What is the case for the project?
Mayor Barger has made an extensive public case for data centers while declining to answer specific questions. At a recent city council meeting he said this type of project “has a large ripple effect throughout the city and provides meaningful revenues that will allow us to make generational improvements.” His estimates: upwards of 2,000 jobs and workers during construction and “100 or more high-paying jobs” once operational — plus a dramatically expanded tax base for a town of Brookwood’s size. Supporters also note the site sits in an industrial corridor the city has planned for years, in a county that already hosts heavy industry like Mercedes-Benz in nearby Vance.
Own land or a home along the Brookwood Parkway corridor? Big projects change what property is worth — sometimes quickly. Get a free, no-obligation home valuation or talk land strategy with our land & lot team: call or text 205-292-2108.
How could a data center affect Brookwood real estate prices?
This is the question we are hearing most, and the honest answer is: the research is mixed, and the details matter.
The reassuring news first. Two recent studies reported by Bisnow found data centers generally do not drag down nearby home values — one found homes within 1.5 miles of Indiana data centers grew 42% versus 41% in their broader markets, and a George Mason University researcher found no statistically significant negative effect on sale prices near Northern Virginia data centers. A Data Center Knowledge review of the research reached a similar conclusion: on average, proximity has not hurt prices — though most of that data comes from regions with decades of data-center experience.
But averages hide the split-screen effect HousingWire describes: data centers can boost regional demand, land values and tax bases while homes immediately beside a controversial site face buyer hesitation over noise, water, traffic and uncertainty. Locally, here is how that could play out:
Likely upward pressure: land values along the Brookwood Parkway industrial corridor (large-acreage owners suddenly have a motivated class of buyers), rental demand from a construction workforce that could number in the thousands (a real opportunity for investment property buyers in Brookwood, Cottondale and East Tuscaloosa), and long-term demand tied to 100+ permanent high-paying jobs and improved city finances.
Watch-outs: homes immediately adjacent to the site may see a thinner buyer pool during construction (2026–2028), and unresolved questions about noise, power and water will weigh on sentiment until Applied Digital formally commits and publishes operating details. If the middle school relocates, school-driven buying patterns in Brookwood could shift, too.
Bottom line: Brookwood sits 15 minutes from Tuscaloosa in a county whose housing market we track monthly in our Tuscaloosa County market report. A project of this scale — landing in the same corridor that already supports Mercedes and its suppliers — is more likely to raise the area’s economic floor than to sink it. But individual streets will feel it differently, which is why hyper-local advice matters more than national averages.
What should Brookwood homeowners and buyers do right now?
If you own a home nearby: do not make a panic decision in either direction. Get a current valuation so you have a baseline before the project is formally announced, and keep records of your home’s condition. If your property fronts the corridor or involves acreage, understand what industrial-adjacent land is trading for before entertaining any unsolicited offer — landowners near projects like this are often approached early and lowballed.
If you are buying: ask sellers and agents directly about the project, drive the corridor at different times of day, and weigh the school question if Brookwood Middle matters to your family. For buyers relocating for construction or permanent roles, our relocating to Alabama guide and new construction search are good starting points.
Not sure what this project means for your street? We know Brookwood, Cottondale and Vance house by house. Call or text 205-292-2108 for a straight answer — no pressure, no obligation.
Frequently Asked Questions
Is the Brookwood, Alabama data center officially confirmed?
Not yet. The ADEM stormwater permit (ALR10C8B4) is approved and names Applied Digital’s LLC as the applicant, but the company says “no decision has yet been made whether or not to proceed.” The permit is the strongest public evidence so far, not a formal announcement.
Where exactly would the data center be built?
On land around Brookwood Parkway in eastern Tuscaloosa County, near Brookwood Middle School. Applied Digital entities own just under 1,300 acres there; the initial permit covers about 137 acres of disturbance.
How big would the Brookwood data center be?
Roughly 2 million square feet — one of the largest buildings in Tuscaloosa County, comparable to the Mercedes-Benz body shop in Vance and nearly eight times the size of Tuscaloosa County High School.
Will the data center lower home values in Brookwood?
National research says probably not on average — studies in Indiana and Northern Virginia found homes near data centers appreciated at or near market rates. But homes immediately beside the site could see buyer hesitation during construction, while land values and rental demand in the area are likely to rise. Individual results depend heavily on location.
How many jobs would the data center bring?
Brookwood’s mayor estimates upwards of 2,000 construction jobs and workers during the build and “100 or more high-paying jobs” once operating. Those are the city’s figures; Applied Digital has not published its own.
What happens to Brookwood Middle School?
Mayor Joe Barger has said the school is “outdated and overcrowded” and may need to be relocated, pending discussions with the county school board. No formal plan has been announced.
Wondering What This Means for Your Property?
Whether you own a home near the corridor, hold acreage in eastern Tuscaloosa County, or are weighing a move to the area, we will give you a straight, local answer backed by real data.
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