# Alabama bill would limit data center tax breaks, requiring local investments for extensions _Tuesday, April 14, 2026 at 10:08 AM EDT · Policy, Infrastructure · Latest · Tier 2 — Notable_ ![Alabama bill would limit data center tax breaks, requiring local investments for extensions — Primary](https://media.datacenterdynamics.com/media/images/alabama.2e16d0ba.fill-1200x630.png) Alabama legislators have passed a bill that would limit tax breaks offered to data centers in the state, sending the measure to Governor Kay Ivey for final approval. The legislation would reduce the maximum exemption period for data center tax abatements from 30 years to 20 years while imposing new requirements for additional benefits. House Bill 399, proposed by Representative Leigh Hulsey in February, passed both the Alabama House and Senate and now awaits the governor's decision. Under the bill, data centers could only receive an additional 10 years of tax abatement if they make qualified local investments in infrastructure, broadband, water or wastewater systems, or education support. The legislation would also require data centers offering more than 100 megawatts of capacity to begin paying state non-educational property taxes and sales and construction taxes once a facility enters service. Currently, Alabama's data center exemptions can last up to 30 years without such investment requirements. Most of Alabama's data centers are clustered around its largest cities of Birmingham, Montgomery, and Huntsville. The state has seen growing interest from data center developers, but the industry expansion has generated local backlash that prompted the legislative response. One controversial project is Project Marvel, a proposed 1,600-acre data center campus set to be built just outside Birmingham in Bessemer. The project has attracted criticism since its announcement in March, highlighting tensions between economic development incentives and local fiscal concerns. ## Sources - [Data Center Dynamics](https://www.datacenterdynamics.com/en/news/alabama-bill-limiting-data-center-tax-breaks-goes-to-governor/) --- Canonical: https://techandbusiness.org/newswire/2kR9nJxTrWAUbGttt0NhkA Retrieved: 2026-04-21T11:01:22.328Z Publisher: Tech & Business (techandbusiness.org)