Birmingham officials have clarified a recent zoning decision tied to a proposed AI factory, changing the outcome of an earlier vote.
Zoning Vote Reconsidered
The city’s Zoning Board of Adjustments reviewed a request on March 26 for a power substation at 201 Milan Parkway. The site will host a planned multibillion-dollar AI facility in the Oxmoor Valley area.
Board members initially announced approval during the meeting. The vote included three in favor, one opposed, and one abstention. However, city attorney Nicole King later confirmed that the vote did not meet approval requirements. The board requires at least four affirmative votes to pass a request.
King explained that an abstention counts against the total needed for approval. As a result, the motion failed, and the application now counts as denied.
Project May Still Move Forward
Despite the denial, the project may not need that approval to proceed. City officials reviewed the case and determined the proposed substations do not meet the legal definition of a public utility substation.
According to the city, the facilities will serve only the AI factory. They will not provide power to surrounding neighborhoods. Because of this, the project does not require a special exception under current zoning rules.
Nebius, the company behind the development, supported this interpretation. The company stated it will continue working with city leaders and residents as planning moves forward. The project still must complete the standard permitting process before construction begins.
Construction Timeline and Power Plans
Nebius purchased about 75 acres in Oxmoor Corporate Park for the development. The property already carried zoning approval for data center use. The company submitted permit applications before the city placed a temporary pause on new data center projects.
City leaders approved a six-month moratorium in early March. However, they excluded projects already in progress. Officials confirmed that both the Nebius project and an expansion by DC Blox fall under this exemption.
Crews have started demolition work at the site, which once housed a Regions back-office facility. Nebius plans to begin construction within the next three months, with completion expected by 2028.
The company will fund the required power infrastructure. Alabama Power has confirmed it can support the facility’s expected 300-megawatt demand. Both the company and the utility say the project will not increase electricity costs for local residents.
Nebius has also launched a public information page for the Birmingham project. Community members can submit questions and feedback directly through the company.
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