U.S. Sen. Katie Britt (R-Montgomery) questioned on Tuesday the effect a Bessemer data center would have on Alabama's already high power rates.
The Bessemer City Council voted 5-2 to approve a zoning request that will allow construction of one of the nation's largest data centers.
The proposal has received widespread opposition from residents and environmentalists concerned about the environmental impact, while supporters, including the City itself, are touting the economic impact.
The zoning request rezones over 700 acres of forested land from agricultural to light industrial use. The developer says only 100 acres of that will be used for the project.
The Alabama Department of Transportation has warned that plans for the data center could be affected by the state's Northern Beltline project.
Data centers can also sometimes raise power rates for other residents by increasing electricity demand.
Britt said on a call with Alabama reporters on Tuesday that she had concerns about the data center’s effect on power rates that are already the highest in the Southeast.
“I want to make sure that the Northern Beltline is completed. I think that opens opportunity for an entire part of Jefferson County and an entire region that is poised for economic growth and development,” Britt said. “I think finishing that off will unlock endless potential and will create opportunity and pathways to an even greater American dream for so many residents that will live along the beltway and will be touched by that. I think that number one that has to be finished. I think that needs to be prioritized no matter what comes next.”
Britt continued, “Second, to your question about data centers, I understand the importance of data centers. We are in a race against China when it comes to AI, and we have to make sure that we maintain the lead that we currently have because this is the race. However, I think we have to be really smart about how we do it.”
“I think when you’re looking at a data center, particularly even in this spot, you have to ask yourself, what are the opportunity costs of putting this here? First, you have the power delivery and I’d say the demand, power demand that will come from this facility. The question becomes then: what do we not get to do off and around this beltway because this will be driving so much of power demand from just one facility and what does that mean for other good-paying jobs in the area or opportunity that we could have either attracted but now will not be able to because we won’t be able to meet other power demands,” Britt said. “I think you have to think about that. I think that’s really important. I also think affordability…look, we have the highest power rates in the Southeast. I think that is unacceptable. I think when you’re looking at the fact that we are working so hard to make sure that we are rolling back regulation and that we are creating an opportunity not just for energy independence but truly energy dominance, we want to make sure that is passed on to the consumer. I have a question, I know I’ve been told that it’s not going to raise rates. I want to know is that commitment for the long-term because I want to make sure that we are making life more affordable for Alabamians, and when you look at this and you kind of sort of see how all of this works together, I think that it raises some real questions that need to be answered.”
Britt said finishing the Northern Beltline should be the priority.
“Ultimately, I would say: 1. Finish the Northern Beltline. I think that has to be the priority. 2. Take a look at what this brings to the area versus what we may lose as a result and how do we meet those demands, what other opportunities may we lose because we will not have the power supply for them and what does this do for affordability? I want to make sure that we have lower power rates than our neighbors, not higher power rates. I think we’ve got to be focused on that and we need some real answers about how we are going to drive down power rates for Alabamians and what role this plays in that overall,” Britt said.
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