Brookwood Data Center: What It Means for Nearby Housing

Last updated: October 2026

QUICK SUMMARY

As of October 2026, the short answer is: steady, local pressure, not a housing boom. Applied Digital’s $3.2 billion Delta Forge 2 data center campus in Brookwood won unanimous incentive approval from the Tuscaloosa County Economic Development Authority, with construction set to begin in October 2026 and finish by the end of 2028. The biggest near-term housing effect is likely rental demand from 1,000+ construction workers at peak. Only about 100 permanent jobs are expected, so long-term demand for homes to buy should be modest. School tax revenue is not abated. At an October 1 town hall, the company told residents the campus will use closed-loop cooling, and a Brookwood City Council vote on a supporting resolution is expected within days. Since then, Applied Digital has installed sound monitors at Brookwood Middle School to record baseline noise before construction.

Key Takeaways

TCEDA approved incentives unanimously in late September 2026; the Tuscaloosa County Commission and Brookwood City Council still have final votes.
At an October 1, 2026 town hall, Applied Digital described closed-loop cooling, regulated backup generators and retention ponds. The site is about 0.8 miles from Brookwood Middle School.
$314.5 million in tax abatements over 20 years, offset in part by $270 million in community benefit payments.
About $131.5 million in education taxes over 20 years is not abated.
Construction peaks above 1,000 workers; about 100 permanent jobs after 2028.
Brookwood, Vance, Coker and east Tuscaloosa renters and landlords will feel the construction years most.

For months, Brookwood residents have heard about three separate data center proposals. In September 2026, the first one became real. This article, from The Williams Group at Keller Williams Realty, sorts out what was approved and what it could mean for people who own, rent or plan to buy homes in eastern Tuscaloosa County. For the background on the earlier votes, see our coverage of the Brookwood council’s rezoning of the Youngwoo site and the Brookwood data center town hall and records.

What exactly was approved in September 2026?

The Tuscaloosa County Economic Development Authority (TCEDA) board voted unanimously to approve incentives for Applied Digital’s Delta Forge 2 campus. Here is what was announced:

Investment: $3.2 billion, combining Applied Digital and an unnamed hyperscale tenant.

Site: a campus of about 160 acres and roughly 1.26 million square feet, inside a site of nearly 1,300 acres the company owns in Brookwood.

Jobs: more than 1,000 construction workers at peak and about 100 permanent full-time jobs.

Timeline: construction starting October 2026, completion expected by the end of 2028.

Still ahead: an incentive vote by the Tuscaloosa County Commission and a final vote by the Brookwood City Council. Local reporting described both as expected to pass.

Brookwood Mayor Joe Barger called it the largest industrial operation to come to Tuscaloosa County since Mercedes-Benz U.S. International. That comparison is about the size of the investment. The permanent workforce is far smaller.

How do the tax breaks and community payments work?

This is the part homeowners ask about most, because it touches local services and schools.

Abated: about $314.5 million over 20 years, made up of roughly $140.7 million in property (ad valorem) taxes and $173.8 million in construction-period sales and use taxes.

Not abated: education taxes. TCEDA estimates about $131.5 million for schools over 20 years ($101.6 million from property taxes and $29.9 million from sales and use taxes), flowing mainly to Tuscaloosa County Schools and Tuscaloosa City Schools, with a portion to state education taxes.

Community benefit payments: $270 million, paid as $13.5 million a year for 20 years to TCEDA and shared among Brookwood, Tuscaloosa, Northport, Tuscaloosa County, the Tuscaloosa County Road Improvement Commission and DCH. Applied Digital described these as partly replacing the abated taxes.

What this does not do: it does not change the property tax rate on your home. Your bill is still set by the millage where you live. Our breakdown of Tuscaloosa and Northport property tax rates shows how those rates differ across the county, including Brookwood, Vance and Moundville.

Own a home or land near Brookwood or Vance and want to know where your value stands? Get a free home valuation or call 205-292-2108.

What did Applied Digital tell Brookwood residents on October 1?

On Thursday, October 1, 2026, Applied Digital held a community town hall in Brookwood, its first public meeting with residents since the incentive vote. Nick Phillips, the company’s executive vice president of external affairs, and Brookwood Mayor Joe Barger took questions on water, noise, power, the environment and how close the site is to schools. “We’re experts in data centers, but we’re not experts in Brookwood,” Phillips said, according to ABC 33/40. Here is what was reported:

Water. The company said the campus will use a closed-loop cooling system that is filled once and then recirculated, rather than drawing water continuously. That is the company’s description; the permit filings will show the details.

Noise and backup power. Backup generators will be subject to state and federal regulations.

Stormwater. Retention ponds and other site protections were discussed.

Location. ABC 33/40 reported the campus, off Brookwood Parkway, is about 0.8 miles from Brookwood Middle School. The company cited the area’s existing power infrastructure as the main reason it chose Brookwood.

What happens next. Applied Digital said permit applications have been submitted and more town halls and community meetings are planned. WBRC reported that the Brookwood City Council is expected to vote within days on a resolution supporting the Tuscaloosa County Economic Development Authority’s approval.

Mayor Barger told the crowd he has “zero concerns,” and at least one resident told WBRC she left cautiously optimistic. For homeowners, the town hall did not change the basic housing picture below: the biggest near-term effect is still rental demand during construction. What it did add is better information for buyers weighing a specific property. If you are looking at a home in Brookwood, check its distance from the site on a map, drive the route trucks will use during construction, and ask us to pull what nearby homes have sold for since the project became public.

What has happened since the October 1 town hall?

OCTOBER 6, 2026 UPDATE

Applied Digital has installed sound-measuring equipment at Brookwood Middle School to record baseline noise levels before construction starts, WBRC reported on October 4. The City of Brookwood has bought its own monitoring equipment, which WBRC said should be running within a couple of weeks.

Mayor Joe Barger told WBRC the city will be able to tell “if there’s a drastic increase” in sound and address it. That matters for nearby homeowners because Brookwood has no decibel-specific noise ordinance, so a recorded before-and-after baseline is the main way anyone can show whether noise changed once the campus is running.

The Tuscaloosa Thread’s account of the town hall added more detail on what the company told residents:

Water: about 1.4 million gallons to fill the sealed cooling loop once, then an estimated 750,000 gallons a year, most of it for restrooms and kitchens. These are the company’s estimates.
Distance: the company put the facility about 4,405 feet from Brookwood Middle School, in line with ABC 33/40’s report of about 0.8 miles.
Footprint: the buildings would use about 160 acres of the roughly 1,300 acres Applied Digital owns, with the rest held as buffer.
Noise sources: rooftop cooling fans and backup generators were named as the equipment neighbors could hear.
Hiring: 1,000+ construction workers at peak and 100+ permanent jobs, with a stated preference for local hiring through general contractor BCCG, plus a community engagement coordinator hired from Brookwood.

Still pending: WBRC reported the Brookwood City Council is expected to vote on a resolution supporting the TCEDA approval, and state permitting is still underway. We will update this page when those happen.

Will the data center raise home prices in Brookwood?

Nobody can promise that, and we will not. Here is how we would think about it:

Rentals feel it first. A construction workforce of 1,000+ needs somewhere to live for two years. Short-term and month-to-month rentals, RV and extended-stay options, and small homes near I-20/59 in Brookwood, Vance, Cottondale and east Tuscaloosa are the most likely to see extra demand.

Buying demand should be modest. About 100 permanent jobs is real, but it is not the kind of job count that reshapes a housing market on its own.

Land is a separate question. Three data center developers now control large tracts along the Brookwood corridor. Nearby acreage owners may get more calls. If that is you, our guide for land and lot sellers explains how land is priced and sold.

Proximity cuts both ways. Some buyers will like being near new jobs and infrastructure. Others will avoid homes right next to a large industrial site. Location within Brookwood matters.

What should buyers, sellers and landlords nearby do now?

Buyers: look at where a home sits relative to the industrial sites, not just the town name. Ask about road access and any planned utility work. Our Vance community guide and Coker guide cover nearby options, and we compared commutes in where to live near the Mercedes plant in Vance.

Sellers: do not price off headlines. Price off recent sales near your home. A home a few miles from the site is in a different position than one next door to it.

Landlords and investors: the construction years are a defined window, roughly late 2026 through 2028. Plan for demand that rises and then settles. See our guide for investment property buyers.

The Williams Group’s local perspective

LOCAL TWG PERSPECTIVE

We have watched Brookwood go from rumors to rezonings to a signed project in about a year. The honest read is that Delta Forge 2 is a big economic story and a smaller housing story. The most useful thing a Brookwood or Vance homeowner can do right now is know their numbers: what similar homes nearby have actually sold for, and how their home’s location compares to the sites. Across the river, Northport leaders have said the city lacks the high-voltage lines these projects need, and they are writing zoning rules instead of a moratorium. We covered that in Northport’s data center zoning plans. We will keep updating this page as the county commission and Brookwood council vote.

Frequently asked questions

Will the Brookwood data center use a lot of water?

At an October 1, 2026 town hall, Applied Digital said the campus will use a closed-loop cooling system that is filled once and recirculated rather than drawing water continuously. The company estimated about 1.4 million gallons for the initial fill and roughly 750,000 gallons a year after that, mostly for restrooms and kitchens. Permit applications have been submitted, and those filings will show the details.

Where is the Applied Digital data center in Brookwood?

It is on a site of nearly 1,300 acres that Applied Digital owns in Brookwood, in eastern Tuscaloosa County. The campus itself covers about 160 acres.

When will construction start on Delta Forge 2?

Construction is set to begin in October 2026, with completion expected by the end of 2028, pending the remaining county commission and Brookwood council votes.

Will Tuscaloosa County schools lose money from the tax abatement?

Education taxes are not abated. TCEDA estimates about $131.5 million for schools over 20 years, mainly to Tuscaloosa County Schools and Tuscaloosa City Schools.

Is this the same project as the Youngwoo data center?

No. Brookwood has three separate data center developers: Applied Digital, Youngwoo & Associates and Provident Data Centers. The September 2026 incentives are for Applied Digital’s Delta Forge 2.

Sources

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What Does the $3.2 Billion Brookwood Data Center Mean for Nearby Housing?